Equipping Modern Enterprises with Powerful GST, E-Way Bill & E-Invoicing Solutions

logo image
  • GST Filing & Reconciliation
  • E-Way Bill Automation & E-Way Bill APIs
  • E-Invoicing Simplified
  • GSTIN Search
  • Expert Assistance

GST Fraud

Under GST, there have been several instances where the shopkeepers are charging wrong GST rates from the customer. Levying the wrong GST rate from the customer is considered as GST frauds under GST. So it is necessary to know about GST complaint against dealer and GST frauds complaints.

Types of GST Frauds

1) GST collected on exempted goods or/and services

There are many products or/and services that come under the GST exemption list some of the examples of such goods are water, vegetables, eggs, and so forth. However, most of the customers are not aware of this list, shopkeepers and dealers manipulate and charge GST on such exempted items.

2) Levying wrong GST than the prescribed GST rates

As the GST rates of goods or/and services keep changing from time to time, the customer is not aware of the exact GST rates. The best example of such GST fraud is GST on clothing items. As per the GST Act, only a 5% GST rate is applicable to clothing products that have a value of 1000 INR or less but however many shop owners are levying a common GST Rate irrespective of their prices.

3) Fraud GST officers

There have been instances where a taxpayer has a complaint about fake people posing as GST officers. On the response of which the Chief commission of GST (Delhi Zone) clarified that no GST officer is allowed to visit any taxpayer and demand money in the name of GST.

Actions against GST Fraud

There are two ways using which a taxpayer can file a fake GST bill complaint and they are:

GST Help Desk Number: 0120-4888999

GST Help Email: helpdesk@gst.gov.in

Moreover, there are many other ways through which you can share your GST fraud complaints such as unofficial GST forums and boards. This will not solve your problem but it will help other users to lodge GST complaint against shopkeeper

In addition to this, you can also contact your regional or state GST helpline to register GST fake bill complaint

Penalties for GST fraud

Any taxpayer who has carried out GST fraud has to either pay a 100% penalty amount or 10,000 INR against GST theft complaint.

Additional penalties for GST fraud-

GST Amount involved 100-200 lakhs INR 200-500 lakhs INR Above 500 lakhs INR
Jail term Up to 1 year Up to 3 years Up to 5 years
Fine In all three cases

Steps to controls GST Frauds

To put an end to the GST Frauds you can take the following measures:

  1. Checking GST rates of goods or/and services using HSN code search
  2. Verifying GST number using GST Number search or GST number search by name or PAN

How useful was this post?

Click on a star to rate it!

Average rating 4.7 / 5. Vote count: 180

No votes so far! Be the first to rate this post.

GST Compliance