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How to Identify GST Fraud – Loot in Hotels, Restaurants and Shopping Bills – Simple steps

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How to Identify GST Fraud in Hotels and Restaurants Bills ?

Many of the common people still have confusion regarding different GST rates for various products and services. They are the target of hoteliers and restaurants. Most of these are not GST registered but charge extra tax in the name of GST.

When you go through such a situation, you can identify these fraudsters if you are aware about different GST rates for different products. If you question them hotel owners usually argue and later agree to repay tax amount. They are charging wrong GST (around 18%) which is totally against law.

Steps to check, whether your dealer is registered for GST or not:-

  1. Check the GST number in the bill which will be a 15 digit number that is printed on the bill. The sixth character of GST number is either ‘P’ or a ‘C’, where P indicates people (individual business) and C denotes a company. Keep in mind that there may be chance of a fake number by some fraudsters.
  2. If you found a GST number, then this can be verified through the website of Goods and Service Tax (see the image below).
  3. If it is fake, you can even make a complaint (see below for different options)

Options to register a complaint about GST fraud

  • Register at: http://consumerhelpline.gov.in/; or
  • Call: 1800114000 or 14404 or SMS on 8130009809
  • Email: nch-ca@gov.in, consumer-helpline@gov.in
  • GST portal: helpdesk@gst.gov.in, 0120-4888999, 011-23370115
  • Twitter handles: @jagograhakjago @consaff @askGST_Goi, @FinMinIndia
  • Consumer Court

How Much is the Actual GST charge

  • 12% GST: Non AC/ non-alcohol serving restaurant or hotels should charge
  • 18% GST: AC/ alcohol-serving restaurants or hotels should charge
  • 18%: takeaways
  • Restaurants up to an aggregate turnover of Rs 75 lakh with composition scheme will charge GST at the rate of 5 per cent.
  • Potable alcohol does not come under GST

About GST and Registration Number

As per govt. guidelines, You have the right to refuse to pay the ‘service charge’ if you are unhappy with the service. GST is totally voluntary and not mandatory. You can file a complaint in consumer court hotel owners insists customers for paying the service charge. GST Registration number is a 15 digit identification. This is given to each taxpayer based on PAN and State of the applicant.

  • The first two digits: State Code
  • The Next 10 digits: PAN of the applicant
  • The one digit: entity code

This 13th digit is alpha-numeric (1-9 and then A-Z). This is offered based on number of registrations a legal entity (having the same PAN) has within one State.

  • The one digit is left blank for future use.
  • The last digit: check digit

List of State Code in GST Number

  • 01 – Jammu & Kashmir
  • 02 – Himachal Pradesh
  • 03 – Punjab
  • 04 – Chandigarh
  • 05 – Uttranchal
  • 06 – Haryana
  • 07 – Delhi
  • 08 – Rajasthan
  • 09 – Uttar Pradesh
  • 10 – Bihar
  • 11 – Sikkim
  • 12 – Arunachal Pradesh
  • 13 – Nagaland
  • 14 – Manipur
  • 15 – Mizoram
  • 16 – Tripura
  • 17 – Meghalaya
  • 18 – Assam
  • 19 – West Bengal
  • 20 – Jharkhand
  • 21 – Orissa
  • 22 – Chhattisgarh
  • 23 – Madhya Pradesh
  • 24 – Gujarat
  • 25 – Daman & Diu
  • 26 – Dadra & Nagar Haveli
  • 27 – Maharashtra
  • 28 – Andhra Pradesh
  • 29 – Karnataka
  • 30 – Goa
  • 31 – Lakshdweep
  • 32 – Kerala
  • 33 – Tamil Nadu
  • 34 – Pondicherry
  • 35 – Andaman & Nicobar Islands

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