In July of 2017, while the nation was already having a heated debate on demonetisation, the government implemented the Goods and Services Tax ( GST). It is an indirect tax replacing numerous other indirect taxes, including services tax, VAT, and excise duty. Put otherwise, the provision of goods and services is subject to the Goods and Service Tax (GST). Every value addition is subject to the comprehensive, multi-stage, destination-based Goods and Services Tax Law in India.
Everything from grocery bills to cinema tickets to restaurant or hotel food costs is subject to GST. We provide this tax to the government through traders rather than paying it directly to the government. But does every place have the right to charge GST? Do you know that restaurants that are taking advantage of the GST Composition Scheme of the government cannot charge GST from the customer on the bill? Due to a lack of proper information and knowledge, these restaurants sometimes take advantage of our ignorance and we pay the GST.
The benefit of the composition scheme is given to reduce the tax burden on small traders. Businessmen adopting composition schemes cannot issue tax invoices. Because they do not have the right to collect tax from their customers. Instead, composition traders have to pay tax from their own pockets.
Entrepreneurs who do not conduct business with other states and have an annual turnover of less than Rs 1.50 crore are eligible to apply for the GST composition scheme. Following registration in the composition scheme, there is no requirement to provide deal receipts or file monthly returns. For a goods transaction, a mere 1 per cent tax needs to be paid. Businesses that provide services are subject to a 6% tax and businesses that operate non-alcohol restaurants a 5% tax.
Whoever avails the benefit of the GST composition scheme will have to mandatorily write “composition taxable person, not eligible to collect tax on supplies” on the bill of his establishment. If you find it on your bill, then they cannot add a GST charge to your bill. You can refuse to pay an additional GST charge on the food bill.
You can also find out through the GST Portal whether the restaurant where you ate has availed the benefit of the GST Composite Scheme or not
Go to the GST portal.
Click on Search Taxpayer.
Click on Search Composition Taxpayer.
Enter the GST number written on the restaurant bill.
By doing this it will be known whether the restaurant is a regular GST payer or a composite payer.
If the restaurant is a composite payer, do not pay the GST charge added to the bill.
If the restaurant has forcibly collected GST in the bill, then you can submit a complaint online by visiting the link.
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