FOOD NEWS
Why You Should Check Your Restaurant Bill for GST Compliance
A chartered accountant is urging diners to verify a restaurant's GSTIN before paying, warning that some establishments under the Composition Scheme are illegally collecting tax from customers.
When dining out, it has become common practice for many customers to pay their bills without a second glance at the tax breakdown. However, a recent social media post by a chartered accountant has highlighted a simple 30-second verification process that could prevent diners from paying unnecessary, and potentially illegal, charges on their restaurant bills.
The issue centers on the GST Composition Scheme, a tax structure where small businesses pay a flat tax rate from their own pockets rather than collecting it from customers. According to the expert, businesses registered under this scheme are strictly prohibited from adding GST, CGST, or SGST to a customer’s invoice. If they do, that money does not reach the government; instead, it remains with the business owner as an unauthorized collection.
How to Verify Your Restaurant Bill
The warning follows an incident at a dhaba in Udaipur, where a customer noticed a GST charge on their bill. By checking the restaurant's Goods and Services Tax Identification Number (GSTIN) on the official government portal, the customer was able to confirm the establishment's tax status. The expert advises that diners can perform this same check by visiting the official GST website, selecting the search taxpayer option, and entering the GSTIN or PAN found on their bill.Once the details are entered, the portal will display the business's status as either Regular, Composition, Suspended, or Invalid. If a restaurant is listed as a Composition taxpayer but has still included GST on the bill, the expert suggests that customers have the right to question the charge and report the matter to the relevant GST authorities. By taking a few moments to verify these details, diners can ensure they are not being overcharged and are paying only what is legally required.
