We're four odd months into the new GST regime, and already there are scores of people trying to trick the system, and clueless consumers.
According to GST Helpline India, the most common types of fraud currently are collecting tax on products/services that are GST - free, charging GST over and above the defined rate and fraudsters posing as GST officers. For instance, consumers have complained about shopkeepers and dealers charging additional rates in the name of GST on daily need items like mineral water, grains, milk, vegetables, eggs that are on the exemption list. Then, some businesses are illegally levying GST in addition to the already applied VAT tax on their service bills. Earlier this month, the GST Council slashed the GST rate on restaurants to a uniform 5 per cent from over 12 per cent earlier, but many restaurants reportedly continue to overcharge diners. And now the government is reportedly coming down hard on FMCG companies that have failed to pass on benefits of lower taxation to consumers.
Source: Business Today