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Unregistered establishments and restaurants cannot charge GST on your bill

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Even after so many days of GST launch, there are still some confusions regarding it. Especially, the restaurant’s bills are creating much problems and difficulties. Recently an alert from a CA Jagdish Lade from Pune after a meal in a local restaurant saw that he had been charged GST. However, Lade also found that the restaurant does not have GST registration number.

Mr. Lade refused to pay the money which had been charged as GST, informing the restaurant that unregistered restaurants cannot charge the tax. In the end, the restaurant returned the money to Lade.

The CA posted it on his social media account which had gone viral with more than 25 thousand likes and 95 thousand shares. Lade said that the restaurant owner had insisted that their system had been updated. Once Lade made it clear that action could be taken against an unregistered entity charging GST, the restaurant returned the money.

However, the catch here, Lade is coming from accounting background, is a CA with his firm. People who are not aware of GST rules would end up paying more than they should. There are some tips which Lade has mentioned for the benefit of the ordinary people.

Remember that a registered dealer would have to print the GST number on the bill. To verify this figure, you can log on to https://services.gst.gov.in/services/searchtp.

GST for nonĀ AC restaurant which serves alcohol is 12%, and GST for AC restaurant which serves alcohol is 18%.

In case you suspect a GST fraud you can file a complaint at helpdesk@gst.gov.in or can call 0120-4888999, 011-23370115 or tweet at @askGST_Goi, @FinMinIndia.

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Anand Narayanaswamy works as a journalist based in Trivandrum, India. After unsuccessfully completing the company secretary course, Anand decided to step into software and technology route. More recently, he had a great interest in exploring about the Goods and Services Tax.

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