GST Fraud
Restaurants, shops etc which are selling services/ goods to end consumer & give GST complaint Invoices but not the full GST amount collected by them is paid to the Govt as many of this Invoices are cancelled and not shown in the records by manipulating the software. Since the end consumer cannot get ITC credit & also the payment by end consumer is done by cash there is no way the govt. will know as to how much GST is collected by that particular restaurant/ retailer. Many establishments do not accept credit cards and only take cash as payment.
Even big MNC have been forced by this establishment to establish such channels of supply that they get supplies with Invoices paid in cash and cannot be traced to them back. So not all the inputs also are recorded and it becomes easy for them to not show the true volume of business in their GST returns.
Thus such GST collected from common man & pocketed becomes extra profit for them. So common man pays higher amount and on top of that the Indian govt. also does not get any tax in form of GST or even Income Tax. Also black money gets generated in the process.
This is very much rampant and such establishments are making lot of extra money at the cost of common man.
With E- Way bill now deferred even transportation of material is now no longer traceable back to the establishment making things much more easier for movement of goods which are not under
Indian govt should think over this issue and find out a solution as this practice is a loose loose situation for every one except for few people who indulge in such practices. more
Even big MNC have been forced by this establishment to establish such channels of supply that they get supplies with Invoices paid in cash and cannot be traced to them back. So not all the inputs also are recorded and it becomes easy for them to not show the true volume of business in their GST returns.
Thus such GST collected from common man & pocketed becomes extra profit for them. So common man pays higher amount and on top of that the Indian govt. also does not get any tax in form of GST or even Income Tax. Also black money gets generated in the process.
This is very much rampant and such establishments are making lot of extra money at the cost of common man.
With E- Way bill now deferred even transportation of material is now no longer traceable back to the establishment making things much more easier for movement of goods which are not under
Indian govt should think over this issue and find out a solution as this practice is a loose loose situation for every one except for few people who indulge in such practices. more
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This is not only in restaurants. it is common in chennai wholesale bazaars in old Parrys corners where it is CASH ONLY or NO SALES REQD. GST / VAT or any other form does not affect these businesses. It is only the common man who pays because of no choie and the govt does not get a penny. Great Sorry Tax has ruined many but enriched few, more
Nov 03
I cannot believe that the Modi government has made us see "Not accha, not saccha din" but really kharab din form 2016 to the present. By giving incentives of money to the so-called poor they are encouraging people not to work and just collect money, by putting so much tax burden on the common man they have reduced us to poverty status while all items are going steadily higher, vegetables, medicines, even critical medicines, hospitalization fees, petrol and its products, everyday items, when will it ever end???? more
Nov 03
Onion is abundantly available now . Also the Ginger . General public certainly better than that of 2014 pl. more
Nov 03
Most of the restaurants doesn't include the GST no. of the costumer even if it is insisted before preparing the bill. They come out with the excuse of either it's not accepting or there's GSTN issue. In most of the cases the person sitting at the bill desk doesn't know how to enter the costumer GST No. in the bill. Wether the costumer is an end user or a claimant on a firm's A/c is a different matter. But it can serve as a counter verification on the genuinity of the trader's GST compliance. # A restaurant's menu rates are w.r.t its status/ location/ infrastructure/ comforts etc. and as such there's nothing as standard rates. # The costumer will know exactly the cost of his/her choice of food item by seeing the menu instead calculating the actual cost by adding GST # In some cases the costumer may have a choice of taking some items other than main food like Tea/coffee/ juices etc. if being pre-informed on the total cost of such items as many such items are easily available in road side shops not classified as A/C restaurants. # Nowadays many restaurants(previously Non A/C road side eateries) have converted( wether they equipped with a running A/c unit or not) as A/C Restaurants to enable themselves to charge GST. The best option to check these frauds on both the costumer as well as the Govt. is to make the Menu rate inclusive of GST. The restaurant/ hotel/ the Firm may file the GST on the Sales. The Authority may have their checks & balances as like any other business firms and the Consumer-if a end user may leave at it or if a firm may make claims as piece and parcel of his/her firm's accounting rules. more
Oct 30
Restaurants are collecting 18% GST over and above their declared pricelist,Whereas they must be getting credit on the input taxes,which they are not passing on to the customers.Unless this tendency is not checked they will continue making extra money from the common customers.State Govt.machinery is very slow in checking this menace. more
Oct 30
totally agree and no govt has dared to question this practice. we would be dumb to believe the govt or its tax officials do not know about it or just want to turn a blind eye for OTHER REASONS more
Nov 03
