The Goods and Services Tax (GST) is a significant reform in India's tax structure, aiming to create a unified tax system across the country. However, with its implementation, there has also been a rise in fraudulent activities, particularly concerning GST numbers. This article aims to educate consumers on how to be aware of GST number fraud, how to verify GST numbers on the GST portal, and what steps to take if they encounter such fraud. Additionally, it will discuss the GST percentages that restaurants can claim, the issue of fake GST numbers, the provision of composite taxpayers, and how to file a consumer complaint if needed.

Understanding GST Number Fraud:

GST number fraud occurs when businesses, including restaurants, provide fake or invalid GST numbers on invoices. This malpractice not only leads to loss of revenue for the government but also deceives consumers who might believe they are paying legitimate taxes. These fraudulent activities can result in higher prices for consumers, with no actual benefit to the government's revenue.

To protect yourself from such fraud, it's essential to verify the GST number provided by any business, particularly restaurants, before making a payment. The verification process is straightforward and can be done online.

How to Check a GST Number on the GST Portal:

To verify a GST number (also known as GSTIN - Goods and Services Tax Identification Number), follow these steps:

• Visit the Official GST Portal: Go to the official GST portal at www.gst.gov.in/.
• Access the Search Taxpayer Option: On the homepage, under the 'Services' section, select 'Search Taxpayer.'
• Enter the GSTIN: In the provided field, enter the 15-digit GSTIN that you wish to verify.
• View Details: Click on the search button. The portal will display the details associated with that GSTIN, including the legal name of the business, the status of the GSTIN (whether it is active or inactive), and the type of taxpayer (regular or composite).

By verifying the GST number, you can ensure that the business is registered and that the tax you are paying is legitimate.

GST Percentages in Restaurants:

Restaurants are allowed to charge GST based on the type of establishment they are and the services they provide. The standard GST rates for restaurants are as follows:

• 5% GST: Applicable to standalone restaurants, whether air-conditioned or not. No input tax credit (ITC) is available under this rate.
• 18% GST: Applicable to restaurants within hotels with room tariffs of ₹7,500 and above per night. In this case, ITC is available.

Consumers should be aware of these rates and ensure that the correct GST percentage is being charged. If a restaurant is charging more than the applicable rate, it may be a red flag, indicating potential fraud.

The Problem of Fake GST Numbers in Restaurants:

One of the common fraudulent practices is the use of fake GST numbers by restaurants. These numbers might resemble legitimate GSTINs but are either entirely fictitious or belong to a different entity. When a restaurant uses a fake GST number, it means that the GST amount you pay does not reach the government. Instead, it ends up as an additional charge that benefits the fraudulent business. To avoid falling prey to such scams, always verify the GSTIN on the GST portal before making a payment, especially if you suspect any discrepancies.

Provision of Composite Taxpayers in GST:

The GST law provides an option for small taxpayers to opt for the Composition Scheme. Under this scheme, taxpayers pay a fixed percentage of their turnover as tax, and they are not allowed to collect GST from their customers. The key points regarding composite taxpayers are:

• Eligibility: Businesses with an annual turnover of up to ₹1.5 crores can opt for the Composition Scheme.
• GST Rate: For restaurants opting for the Composition Scheme, the GST rate is 5%, but they cannot collect this from customers. Instead, they pay it out of their pocket.
• No ITC: Composite taxpayers cannot claim Input Tax Credit.

Consumers should be cautious when dealing with businesses under the Composition Scheme, as they should not be charging GST on their invoices. If a restaurant claims to be under the Composition Scheme but is still charging GST, it is a clear indication of fraud.

Filing a Consumer Complaint:

If you suspect that a restaurant is engaging in GST fraud, you can file a complaint through the following steps:

• Contact the Restaurant: Initially, try to resolve the issue by contacting the restaurant directly.
• File a Complaint with the GST Department: If the issue is not resolved, visit the GST portal and use the 'Grievance Redressal Portal for GST' to file a complaint.
• Consumer Court: If the problem persists, you can file a complaint with the consumer court under the Consumer Protection Act, 2019.
• National Anti-Profiteering Authority (NAA): You can also lodge a complaint with the NAA if you believe that the restaurant is profiting by charging more than the applicable GST rate.

Conclusion
Awareness is the first step towards protecting yourself from GST fraud. By understanding how to verify GST numbers, recognizing the legitimate GST rates applicable in restaurants, and knowing the provisions for composite taxpayers, consumers can avoid being defrauded. If you encounter any suspicious activity, don't hesitate to file a complaint to ensure that your rights as a consumer are protected.