Breaking down of price to avail lower GST
A friend of mine was illustrating how some retailers and traders are billing such that a piece of shoe price 1500 with 12 % GST applicable is being sold as a single show 750 each with 5% gst applicable. This is direct tax evasion.
How will they account for on the input side? Are GST officers aware of such malpractices?
How will they account for on the input side? Are GST officers aware of such malpractices?
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I completely agree with Mr. Mohit Pande. The government should have just three rates for GST. 5%, 10% and 15%. If anybody is caught withholding tax he can be punished by a jail sentence - this will deter defaulters. Secondly, the GST for health care for senior citizens is slated at 18%. Can you believe this. Is this not looting by the government. Here you are trying to pay for hospital care when you are old and sick and you have to pay 18% of your premium to the government who does not give you any benefit!!!
Jan 19
We need to understand in detail about such practices. I am failed to understand why any trader would be interested in charging next lower slab of GST as it does not belong to the trader's pocket. Whatever it charges goes to exchequer. Why should the trader put itself to risk of such manipulation unless he has got some other interest involved that too for his pocket. The traders if said to be interested in passing on the benefit to the consumers by manipulating the definitions then the major traders like Lifestyle, Shoppers Stop, Myntra, Jabong, Pantaloon etc would not have been doing unfair business by charging GST on discounted MRP which otherwise is not chargeable officially. We need to study on this aspect.
Jan 19
This is happening because of different rates of GST for the same product depending on selling price. The solution is just one rate of GST for a product irrespective of selling price. GST Council should change multiple GST rates for a product to lowest rate. For example for Shoes GST rate should be 5%.
Jan 19
Don’t worry. These are the latest creative minds from the business schools. They along with their employers will learn great lessons when they get their fingers burned. Please recall that the CEO of Bharati Airtel who played smart by opening Airtel payment bank account of all Airtel mobile customers by a back end process without the consent of the customers while linking Aadhar with Airtel mobile number. He has to leave his job. Actually he would have been behind bar along with Airtel chief.
Jan 19
Ha Ha Ha, Very Innovative. Is entry in the schedule of rates is as 'Shoes' or the 'Pair of shoes'!! If it is Shoes alone, splitting is no offence!!
Jan 19
