What is GST Fraud and How You Should Deal with it?

Atul Mittal

September 9, 2019

GST Fraud

With the official release of GST tax system in India on 31st July, the complaints about fraud in GST implementation have already started flowing. Since most of the common people are still not completely aware of the exact GST rates applicable on various goods and services, they are being cheated by the shopkeepers who may have been charging GST at wrong rates. These types of actions where more than applicable or wrong GST is levied from the customer are considered GST frauds.

Types of GST Frauds

  • GST being collected on products/services that are GST-free
  • GST collected on products/services that are already VAT paid or in addition to VAT
  • Levying more GST than defined GST rate/s
  • Unethical elements posing as GST officers

We will try to understand all these types of GST frauds in detail here:

GST on GST Exempted Items

There are about 100 items in the GST Exemption list on which GST is not supposed to be levied. This includes daily need items like mineral water, grains, milk, vegetables, eggs, etc. You can find the complete list on the internet. Shopkeepers are not allowed to charge any GST or otherwise tax on such products. But since people are not aware of these things, many shopkeepers and dealers are charging additional rates in the name of GST on such GST-free commodities.

GST in addition to VAT

After the implementation of the GST regime, all the previous taxes including VAT and CST will be replaced by the new taxation mechanism. All service providers like restaurants are supposed to charge according to the new tax system, but many of them are still using the old VAT system to charge tax on their services. Some businesses are even levying GST in addition to the already applied VAT tax on their service bills. This is a classic example of GST fraud. All businesses are supposed to clear their paid taxes on the old stock against input tax credit and implement new GST system immediately.

More GST than defined rates

It was normal for businesses to charge more tax than the defined rates even in the pre-GST era. And now businesses are doing it even more as people are not aware of the exact GST rates they are supposed to pay for a particular item. A common example is the GST rate being charged on clothing items. According to the GST law, 5% tax is applicable on clothing products with the value less than or equal to Rs. 1000 but many shopkeepers are levying a common GST rate on all clothing items irrespective of their prices.

Fraud people posing as GST officers

Many people have filed complaints about them being approached by fake agents who claim to be GST officers and demand for GST taxes. The Office of Chief Commissioner of GST (Delhi Zone) has, in response, clarified that the GST is only evaluated during transit period, and no GST official is permitted to visit any shopkeeper or trader and/or demand for money.

Actions against GST Fraud

For any type of GST fraud related complaints, customers are advised to contact the GST Helpdesk number and/or email id mentioned below.

GST Help Desk Number: 0120-4888999

GST Help Email: helpdesk@gst.gov.in

In addition to this, GST fraud affected people can also follow one or all of the following measures.

Contact GST-fraud complaint helpline number at 011-23370115

There are many unofficial GST forums and boards where you can share your complaint with complete description. It may not help you find the resolution of your query but it will certainly help other users.

Report GST Fraud Here

Contact CBEC Mitra Helpdesk via email at:

cbecmitra.helpdesk@icegate.gov.in or Toll-Free Number 1800 1200 232
You may also contact your regional or state GST helpline to file a complaint against a fraudulent activity or dealer.

Make sure to check the applicable GST rate on a product and/or service online before paying any tax amount to a dealer. The government has launched a “GST RATE Finder App” that you can use to find the exact GST rate for any item or service.

You can also share your GST fraud related complaints and/or questions on our free GST helpline website or mobile app. We will try our best to resolve your issues as early as possible on our end or forward it to the concerned government authority if needed.

Anyone is allowed to file a complaint using any of the options above against any shopkeeper/dealer charging unethical GST tax amount or a fake person pretending to be a GST officer. Further, for any GST fraud related assistance, comment below, we will suggest you the best measures for the same.

caportal

54 Replies to “What is GST Fraud and How You Should Deal with it?”

  1. Where can I do complain and govt & Department wht will given me protection agaist Manfucturing Employer. Evision of the GST.

  2. If I do a complaint against a dealer regarding GST no which he is charging 12% instead of 28% , so wanted to know whether my name will be disclosed to the dealer or not.
    I dont have proof neither I have dealer GST NO details so what are the actions would be taken by government so that the person who is lodging a complaint should be secure?

  3. In bangalore, any apartment complex with more than 10 flats comes as a bulk waste generator and it is collected by a contractor.

    In our apartment ase in bangalore, due to garbage mafia, it is collected by a Real estate company. Now he is giving a plain bill without service tax or printed GST registration number and asking GST to be paid. The handwritten GST Number I checked on the portal: its fake

    1) what should be GST Rate on Garbage collection Services. Does it even come under GST Purview?

    2) Can a registered real estate company be charging GST for garbage collection services?

    3) They are goons threatening not to pick garbage neither allow anyone else to pick garbage. So whom should we report the GST Fraud?

  4. Who is checking the transport and trucks. All goods moving freely inside states without gst. The honest reason suffering and the corrupt r enjoying. Where is Mr Jetty. Please start the eway bill as early as possible

  5. saiyathra.com an online travel company looks like as evading GST syatematically- now they are taking 6000 online that is the cost of the air ticket- balance money he is collecting by cash in shirdi this means he is evading GST of almost 5% i have to file this complain to the government- i was elegible for LTC but i dint get proper bill form hime & so I could not even claim the tour.

  6. Today I had been to Sealdah station to see my son off. I paid the parking fee with 18% GST but no receipt was given. At the station parking entrance, hand written parking time slip is pasted on the car. So there is no record to trace which car at what time has entered. I strongly fill the agency which is collecting the parking fees with GST is cheating the exchequer by not depositing GST collected from the parked vehicles to the authority .
    Kindly do the needful to check the exchequer leakage.

  7. There’s a restaurant that forces customers to pay in cash, and provides no invoices. Does this qualify as evasion of GST, and can that be registered as a complaint? How to keep one’s identity undisclosed?

  8. In Karnataka sales more than 50000/- and 100000/-worth products daily like cloth Plywood and glass and hardware shopers are not isue GST bill.
    Pls appoint urgently a Vizelence squad to proper implementation of GST

    1. The Government has created a “National Anti-Profit Authority” under GST to ensure full benefits of reduced GST rates to consumers.

  9. I have taken a service from a company.. and they deducted the tax and not providing the valid GST number in the receipt. where should I report this. will this comes under GST fraud, Thanks

  10. there are restorent that charge GST on Mineral water and also not give bill with restorent name only GST no printed on bill so how can i complain against him

  11. I purchased washing maschine and plywood double bed. I paid 28 % for washng maschine billing in november and that model already arrived in shop before gst. What is the possibilty of the shopkeeper over charge price from me. Again in case of double bed i paid 28% gst for plywood double bed but he diliverd me after 12-15 days after billing but mean while he told me that gst down but your bill was 28% so we cant refund. But i think he brought with 18% gst and i took 28 % so is there is any chances of cheating with me. Please clarify me. (bill only are handwritten books with printed colums and name of the shop)

  12. I, know a businessman whose yearly turnover approx 1 crore and I have doubt that he have not paid GST and earlier VAT or Service Tax according the law of Land. I have his GSTN No. if possible kindly reply with the concern people with contact no.

  13. Hi, Recently I have contacted to bank for personal loan. They are saying 18% GST I need to pay every month on monthly loan amount. I don’t understand why GST for personal loans and home loans. We don’t having money we are asking for loans (credit). Could anybody please help me to understand if I am wrong.

    As I am below middle class family, I am disappointing about the GST for loans since we are already paying taxes for our salaries

    1. There was 15% services tax on the loan amount before GST implementation in India. Now it becomes costlier for customers after GST. The bank normally charges a processing fee of 1% to 2% and 18% GST on loan amount.

  14. I wrote below mail to AMAZON customer service as under:-

    For Order# 402-9166932-5789961.
    Till 15/11/2017 the product pertains to above order Vaseline Intensive Care Deep Restore Body Lotion, 400ml was under having IGST slab of 28%. Now as new GST slab of 18% applicable on the said product. The benefit of change in GST rates are not passed to me,or many customers. Please review and refund difference amoumt Immediately.
    —————–
    Please guide how to lodge complaint against such discrepancy.

  15. I purchase an item on cost included all taxes. But after billing shopkeeper charged me 5% for cgst and sgst. I argue to shopkeeper for this fraud but he was not agree with me. This way I target for fraud. I want tight action for this fraud.

  16. i have book a room were in non if the rooms are above 7000 hence the GST rate should not be 18% also the hoteller is not ready to provide the GST invoice for which is collecting the GST

  17. A water bottle supplier in Trivandrum who got my contact details through my bank offered to supply a water bottle and dispenser unit. Instead he brought a reverse osmosis system saying that they no longer supply bottles. This was found to be untrue later on. The unit is marked at 9250/- max retail price inclusive of taxes. He is asking me to pay 30,000/- now and refusing to provide any kind of invoice. My belief is that this person is supplying to other parties in Trivandrum without any invoice and getting paid under the table. I refused to pay until I get a pukka invoice and then only at the mrp. He is defrauding the government by not doing an invoice and thereby evading GST. How do I report this person?

  18. Can a barber shop charge GST by writing with a pen on his printed reciept, which is not a standard generated bill with a gst code on it?

  19. I purchased air-cooler it was not working properly seller is fine to replace it with other model but demanding GST for cancellation existing cooler. but i have paid GST at the time of purchase and i am also ready to pay difference amount and GST for new product but he is demanding More GST on Existing product cancellation.
    1. is seller right ?
    2. or demanding illegal money on the name of GST ?.
    what are the rules and sections are available for this kind of fraud cases against seller ?
    i called on this no. 0120-4888999 they are not taking complaint for fraud GST.

    1. There is no GST on cancelling the product. If you are replacing it, pay the difference amount and GST of the new product.

      You can call GST fraud complaint at 011-23370115 or email to add-dgcei@nic.in

  20. I have seen importers importing good with false rate and are selling them without giving a GST bill (selling it in black) this had made working in market very difficult as we want to do business legally and this few people are not having proper bill and are not providing bills… If I want to make a complaint about such fraud trade who are illegally doing business and are still making black money then where can I file my complaint…
    Note this importers are doing an approx of 1 CR turnover a month and this all trade is done without any bill or any bank procedures…. This people are killing over country economicly please suggest me how to stop such frauds

  21. I know a businessman whose yearly turn over approxmatly 50lakh an I know that he have not paidGST and early valu added tax or service tax accordingly the law of taxestion. It is under odisha state

  22. There is a retail trader involved in selling of aluminium fabrication materials, Ms RK Aluminium metal works, Govt ITI junction, Chengannur, Kerala PIN 689121 who never displayed his GSTIN registration number visibly. He has 4 large godowns around his shop where goods in bulk are stored. The stored goods alone may be valued above 100 lacs. My personal inquiries revealed that he is not giving customers proper fat invoices. Can you initiate investigations against above named dealer ? Otherwise kindly inform me to whom I have to submit a written complaint ?

  23. Dear Sir/Madam,
    Telangana GST department,

    I purchased garments on 28-01-2019 from Etrant/Emmadi Associates (owners: Emmadi Ramesh and Emmadi Rajesh 900007550) located at H.No. 5-5-858 opp. Bharath Petrol Pump, Chintalkunta, LB nagar, Hyderabad 500074 and I here by brought to your notice that they are charging GST over and above MRP which is Illegal as per various laws and rules. I have also heard that they do NO BILL sales and purchases to avoid paying taxes. Seeking your action IMMEDIATELY in view on consumer interest.

    Yours faithfully,

  24. On 22-04-2019 i purchased tank overflow ball and others attachments from Verma Sales Corporation but they never provide invoice he just write product and cost on paper and stamp it. I Want to tell the government that people do not fill the GST but their shop sales are very much.

  25. One of the distributor instead of company bills his sending thirdparty software bills in that schemes are manupalted and earning lot amount but his shows sale report is wrongly showing to gst can u take action (36ALNPD1739p2ZL GST NO )

  26. I have seen businessman, who sell nd purchase goods with false rate and are selling them without giving a GST bill (selling it in black) this had made working in market very difficult as we want to do business legally and this few people are not having proper bill and are not providing bills… If I want to make a complaint about such fraud trade who are illegally doing business and are still making black money then where can I file my complaint…
    Note this businessman are doing an approx of 1 CR turnover a month and this all trade is done without any bill or any bank procedures…. This people are killing over aria economicly please suggest me how to stop such frauds

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