Bengaluru authorities crackdown on fake GST scam in Chickpet, Avenue road; How to check authenticity of bills?
By Vinaykumar Patil | First Published Mar 26, 2024, 10:30 AM ISTShops in Bengaluru's prime areas like Chickpet are illicitly collecting 5-18% extra from customers without issuing proper GST invoices, defrauding both consumers and the government. Despite raids and warnings by Commissioner C. Shikha, this practice persists. Consumers can verify GST bills via the GST portal and report discrepancies to the Karnataka Commercial Taxes Department. Strict actions will be taken against offenders.
It has come to light that several shops in Bengaluru's prime business areas like Chickpet, and Avenue Road are collecting additional sums ranging from 5 to 18 per cent from unsuspecting customers without providing legitimate GST invoices. These corrupt practices deceive consumers and defraud the government of its tax revenue.
Commissioner C. Shikha led a series of raids on over 100 establishments in Chickpet and its adjacent business zones to unearth the GST fraud network. Despite stern warnings and the initiation of legal actions against offenders, the fraudulent collection of GST continues unabated, especially in the Chickpet market.
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The modus operandi of this scam involves shops coercing customers to pay inflated amounts under the guise of GST without issuing official invoices. Many bills need to mention a GST number, while some display hastily handwritten numbers, further complicating the authenticity of the transactions. A reality check conducted by 'Kannadaprabha' revealed the gravity of the situation. During visits to six shops, including clothing stores and wedding card vendors, customers were coerced into paying inflated amounts ranging from 12 to 18 per cent under the pretext of GST through handwritten cash bills.
Despite queries regarding the legitimacy of these transactions, customers were offered varying explanations, including discounts for cash payments, further obscuring the true nature of the transactions. Upon scrutiny of one such bill by Commissioner C. Shikha, it was confirmed that the absence of a GST number rendered the transaction invalid.
How to check the authenticity of the bill?
For consumers seeking to verify the authenticity of GST bills, the process has been simplified. By visiting the official GST portal and utilizing the "Search Taxpayer" feature, individuals can ascertain the legitimacy of the GSTIN number provided on the invoice. Any discrepancies should be promptly reported to the Karnataka Commercial Taxes Department via their toll-free number or email address.
To file a complaint regarding fraudulent GST activities, individuals can contact the Karnataka Commercial Taxes Department via their toll-free number: 1800 425 6300. Alternatively, complaints can be lodged via email at cbecmitra.heldesk@icegate.gov.in.
A series of raids are being organized to uncover instances of fake GST invoicing and fraudulent activity within the GST network. It's important to note that GST deductions are only valid if the GSTIN number is correctly reflected on the invoice. Failure to do so means that the GST funds collected from consumers do not reach the government. Commissioner of the Commercial Taxes Department, C. Shikha, has emphasized that strict legal action will be taken against individuals involved in such practices.
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