Fraud Alert: Many Shops are misleading Customers by issuing Fake GST Bills

Some retailers and restaurants in the state are defrauding clients by charging GST unlawfully, it has been revealed lately.

These include traders who do not have GST registration and those who continue to collect taxes long after their registration is cancelled or expires. It has been discovered that the offenders are usually eateries.

A recent incidence included a government official being tricked by a restaurant in the state capital. On July 22, she and her pals dined at the restaurant. They were charged Rs 751.14 in total. The bill included a GST Identification Number (GSTIN) and the GST amount was Rs 48.86. “However, the bill omitted the HSN code for commodities, which is required by law. So I went to the federal GST page and checked the GSTIN. So, I discovered that the GSTIN had been cancelled on its own with effect from June 9,” she explained on the condition of anonymity.

Despite the fact that the woman requested restitution over WhatsApp, the business reportedly did not react. She has since filed a complaint with the local consumer redressal authority.

According to a tax officer, the government has received several similar complaints, the most of which are directed at eateries. According to the officer, the department takes such acts seriously and is giving a reward to customers who provide information about such illegal practises.

“Consumers can file complaints at their local state GST office or via email. We will conduct an investigation based on the complaint. If the malpractice is proven, a percentage of the excess tax amount obtained from the trader will be provided to the informant as a reward,” he said further.

The officer stated that the punishment varies depending on the crimes discovered during the inspection. “If turnover suppression is confirmed, the trader will be asked to pay the tax amount for the suppressed turnover and an equal amount as a penalty,” he stated.

People can check a trader’s eligibility to collect GST on the official GST portal by inputting the GSTIN mentioned on the bill. Non-filing of returns is the most typical reason for GST registration termination.

According to the agency, watchful customers can aid in increasing compliance. The department’s ‘Lucky Bill’ app campaign has also enhanced compliance. This allows consumers to upload bills for purchases of products and services in Kerala. Prizes are awarded to users who upload bills using the programme.