Unlimited Tax Return Filing


Fake GST Bills Circulates in Punjab

Fake GST Bill

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.

Recommended: How to Check Genuine GST Bill Online Given by Seller

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.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Deependar Singh (Ex-Employee)
An engineering graduate who loves to read and write. I follow finance, sports, and start-up stories. I write about GST and newly emerging mobile technologies. I also enjoy reading about philosophy and meditate on ZEN thoughts. View more posts
SAGINFOTECH PRODUCTS

Leave a comment

Your email address will not be published. Required fields are marked *

Follow Us on Google News

Google News

Latest Posts

New Offer for Tax Experts

Huge Discount on Tax Software

Upto 20% Off
Tax, ROC/MCA, XBRL, Payroll, Online GST

Limited Offer, Hurry

Best Offer for Tax Professionals

Upto 20% Discount on Tax Software

    Select Product*

    Current GST Due Dates