The Goods and Services Tax is still something that the people of our country have not yet fully understood. Implemented on July 1, 2017, it has almost been two months but the people are still very much confused about how GST is applied on different items and at different places.
Out of all the cases of GST fraud and misuse, the application of GST by restaurants and other eateries has been the most controversial. We came across number of posts on Facebook where alert consumers described their bad experiences and how they were being charged incorrectly in the name of GST. It’s no hidden fact now that many restaurants seem to charge tax according to their own whims and fancies.
Our attention to this matter was further sharpened when we came across a Facebook post on Our Vadodara. The post communicated about a woman who was charged GST by an unregistered dealer and was even mistreated when she confronted the authorities. She took the matter in her own hands and reported this issue on the Prime Minister Office Portal and witnessed immediate action from Central Excise Department who not only refunded the extra money charged but also issued an apology letter to her.
The sole purpose of this article is to warn our readers about this ongoing scam and help them be aware of how to not be a victim of such a fraud.
The Facts You Should Know
Not all restaurants and eateries are eligible to charge GST.
Non-registered businesses are not allowed to charge GST. To check if the restaurant you’re eating at is registered, you can check the GST number provided on the bill.
You can even verify the GST number here.
Different eating outlets have different GST rates
- For non-AC/non-alcohol serving hotels, it is 12%.
- For AC/alcohol-serving hotels, it is 18%.
- For luxurious or 5-star hotels, it is 18%
(Note: If any part of the establishment has a facility of air conditioning, then the rate will be 18 per cent for all supplies from the restaurant)
You are not obligatory to pay the Service charge that is charged by many restaurants. Customers are entitled to refuse to pay Service Charge, as per the notification by our government.
In case of GST related fraud, where can you file a complaint?
Phone: 0120-4888999, 011-23370115
Twitter: @askGST_Goi, @FinMinIndia
Stay aware! And save your hard earned money.