‘No redressal in GST legal framework’

  • | Saturday | 22nd July, 2017

No specific mechanism has been prescribed under the legal framework of the Goods and Services Tax (GST) for retail consumers to lodge complaints against restaurants or establishments for excessive billing, according to a senior official in the State government. Under this, such restaurants need to pay only 5% GST, without mentioning the tax on their bills. The official, attached to the Commercial Taxes department, was responding to a question on widespread reports of restaurants jacking up prices under the pretext of implementing the GST since July 1. Besides, there is a “composition scheme” available to those restaurants whose turnover in the previous financial year did not exceed ?75 lakh. Apparently, restaurant owners are oblivious to the fact that they are entitled to claim input tax credit.

more-in No specific mechanism has been prescribed under the legal framework of the Goods and Services Tax (GST) for retail consumers to lodge complaints against restaurants or establishments for excessive billing, according to a senior official in the State government. The official, attached to the Commercial Taxes department, was responding to a question on widespread reports of restaurants jacking up prices under the pretext of implementing the GST since July 1. To address queries of dealers on the applicability of tax rates and other issues, the State government will shortly constitute the Authority for Advance Ruling, which consists of an official each from the State and Central governments. The official in the Commercial Taxes department says aggrieved restaurant patrons can approach the State CT department or the Central Board of Excise and Customs (CBEC), which is being renamed as the Central Board of Indirect Taxes and Customs (CBIC). Those assessees with a turnover of over ?1.5 crore will be handled by the State and Central authorities in equal measure while the State will handle 90% of assesses with a turnover of up to ?1.5 crore. Though a National Anti-Profiteering Authority has been proposed, it will only handle cases against large corporate bodies and this has been thought of more as a “deterrent measure.” The official explains that as most of the food items have been fixed at zero rate, the eateries should have reduced their rates or at least maintained them. Apparently, restaurant owners are oblivious to the fact that they are entitled to claim input tax credit. Besides, there is a “composition scheme” available to those restaurants whose turnover in the previous financial year did not exceed ?75 lakh. Under this, such restaurants need to pay only 5% GST, without mentioning the tax on their bills.

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