Traders and business owners in Punjab have found some big loopholes in the GST structure. As per reports, invoices amounting to crores are being sold for a meagre sum of some thousand rupees. Not only will this result in a huge dent in Tax revenues for Government, the resulting agony for the common man and consumer is unacceptable. The GST was touted as an end to cascading tax chain. However, a closer scrutiny of local markets and trade centres reveal a completely different story. GST tax is being levied on the sale of Auto parts, iron and steel, hardware, cement etc by retailers. But these goods have been already taxed under GST at time of purchase. So any additional GST on the selling price is uncalled for.
Happy Retailer Conned Consumer
On hearing the GST rates, consumers normally refrain from demanding bills/ invoices. This turns out to be a golden opportunity for retailers. Besides making substantial profits from sales to common consumers, the retailers further earns hefty money by selling fake invoices/bills.
There are fears that a proper investigation by authorities could expose this countrywide racket. Although the Government had high hopes of GST curbing corruption, the ground situation reflects a completely different picture. The government has kept a keen eye on the Manufacturing sector to negate any wrongdoing. However, it also needs to bring the retailers under its RADAR. Unless dealt with an iron hand, the loss to the countries economy could run into thousands of crores.
Rates for Different GST Bills
- Cement is under 28% GST slab. A fake cement purchase bill can be bought by paying 3% of the actual invoice.
- Tile is also under 28% GST slab. You can get a fake purchase bill by paying 9% on the total invoice.
- There is 18 percent GST on iron but fake bills are purchasable on of payment 4-5% percent.
- There is 18 percent GST on hardware and Auto Parts but fake bills are purchasable on payment of 2 -3 % and 5% of the total invoice value respectively.
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An important thing to note is that actual GST rates will be written on bills/invoices. But under-the-table retailers sell these bill by taking percentage cuts as per mutual agreement.
