Govt to reward receipt taking and reporting

I am so glad that the Government is so actively taking up complaints posting in this circle. Yesterday they fined Nestle 73 crores for profiteering, I believe was reported in this circle and they have even taken my incentive idea. Keep escalating localcircles. posting here is much easier than filling Govt complaint forms.

Taking a copy of the bill from the seller may turn rewarding, with the government planning a lottery scheme for customers to improve compliance. The measure is being explored by the revenue augmentation officers committee to boost collections and it may be put before the Goods and Services Tax (GST) Council during its meeting on December 18.

The Consumer Welfare Fund, where anti-profiteering proceeds are deposited, will be used to reward the lucky winners on monthly and annual bases. The prize money, yet to be fixed, may run into several lakhs of rupees for the annual draw, and about Rs 50,000 for monthly draws.

“The idea is to encourage consumers to ask for a bill, which will push sellers to become GST compliant and pay tax. A lot of beauty parlours and small hotels, for instance, do not give a bill handout. The lottery scheme will have a significant reward amount and this will encourage people to participate,” said a government official.

The lottery scheme will be available for business-to-consumer transactions. Consumers will require to upload sale receipts on a dedicated portal for where winners will be picked.

The Consumer Welfare Fund was created by the central government to allow companies to deposit the profiteered amount in cases where it cannot be returned to consumers.

According to the anti-profiteering rules under the GST regime, suppliers of goods and services should pass on the commensurate benefit of any reduction in the rate of tax on such supplies or the benefit of input tax credit to the recipient by way of a commensurate reduction in prices.

Recently, Nestlé was ordered by the National Anti-profiteering Authority (NAA) to deposit Rs 90 crore in the fund for not passing on the benefit of rate cuts to end consumers.

The GST Network (GSTN), the National Payments Commission of India (NPCI), and the Central Board of Indirect Taxes and Customs are proposed to be involved in the lottery process. “Involving more agencies will reduce chances of any fraud in picking winners,” said another official.

The lottery scheme will be on the lines of what the Delhi government had under the value-added tax regime for consumers, said the official. The Delhi government had introduced the Bill Banao, Inaam Pao scheme in 2015 during the VAT regime.

According to the scheme, a customer was eligible for a prize of five times the taxable value subject to a cap of Rs 50,000, if he/she purchased from a registered dealer. The minimum taxable value of goods was Rs 100 and included eateries. Nearly Rs 5.65 lakh reward amount was distributed among the participants

Because the scheme, the Delhi government found that 224 dealers manipulated their records.

“Similarly, we aim to crackdown on tax evaders using this (lottery) scheme,” said the official.

M S Mani, partner, Deloitte India, said that it is essential to ensure GST compliance across the value chain, especially at the retail level. "Hence, any measure to encourage end-consumer level awareness will lead to significant improvements in compliance behaviour at the preceding supply chain levels as well," he said.

The government is brainstorming innovative ways to plug tax leakages and boost revenues. The revenue has fallen short of compensation requirements of states. The Centre has asked states to recommend ways to improve compliance and collections.

States are yet to receive compensation dues of four months from August onwards, forcing a few states to plan legal action against the Centre. more  

View all 12 comments Below 12 comments
Not sure if this the correct forum
I buy Vim dishwashing liquid manufactured by Hindustan Lever.
Compare the prices paid by consumers for different quantities.
155mL-/ Rs.20, 225mL—-Rs.40, 500mL—Rs.99
Cost of 1 mL for a 155mL pack multiplied by 500mL comes to Rs. 64.50, but the package price is an astonishing Rs.99
Calculation: (20/155) multiplied by 500
Same for 225mL. By this calculation it comes out to Rs. 29, but marked price is Rs. 40

consumers pay high prices for buying the large quantity, almost 50% higher. This cost can not be attributed to packaging and shipping.
I think this might be a good case for the Consumer protection agency and the Media
I will wait for your response.
The quantities are so rigged that the consumer can not make an easy mental calculation at the store.
Thank you
Narayanan more  
Being responsible citizens i think we need to ask for the bill so that the tax goes to the govt.Only i hope that the bill is real and not false and fabricated one which does not go into the inspection more  
Inspite of clear instruction, still there are units, who are not preparing bills and avoiding GST. It will be appropriate to encourage consumers to ask for a bill, which will push sellers to become GST compliant and pay tax more  
Advance payers in Tax be given a token interest on amount deposited. more  
Post a Comment

Related Posts

    • GST increase on mobile phones

      GST rates are being increased from 12 to 18% on mobile phones. We should assess how long portals take to charge increased GST versus how long they take to reduce GST rates. Th...

      By Arjun Singh
      /
    • Sanitizer and Mask profiteering

      I have reasons to believe that some manufacturers are increasing MRPs of sanitizers and masks. I suggest national Profiteetring authority and legal metrology to look at old MRP and new M...

      By Garima Sharma
      /
    • Pathetic Johnson & Johnson

      Seems like Delhi High Court has put a stay on the anti profiteering order against J&J for profiteering on sanitary napkins, Instead of paying the 42.8 crores GST it has gotten the stay from Del...

      By Garima Sharma
      /
    • Shared this from Anti-Profiteering

      Proud to share that this complaint of mine may have been processed by anti profiteering body. They have booked loreal for 186 crores of profiteering. long live consumer movement of india. be vigila...

      By Anil Mehta
      /
    • GST rate rejig

      I have been told by my industry association friends that Finance Minister listens to localcircles and takes interest in collective asks of this platform. I am not sure if this poll is be...

      By Sridhar Mohan
      /
    • GST

      already we are blocking the working capital by paying the advance GST for all imports, to get back from the market it takes minimum of 5 to 6 months. If further increase all small scale industries ...

      By Anonymous Circle member
      /
    • GST Rate Increase

      Reading in the news that the Government is considering increasing gst rate from 5% to 6% for items in this bracket? Issues - Since the difference is small, will be very difficult to catch profiteer...

      By Ajay Dutta
      /
    • Saving due to GST 320 per month

      Finance Ministry’s attached calculation is showing that due GST every household on average is saving 320 per month. Can everyone please review and share their feedback. Is it more ...

      By Sridhar Mohan
      /
    • J and J profiteering of 2.3 Billion caught with circle efforts

      The National Anti-profiteering Authority is investigating Johnson & Johnson Pvt Ltd for not passing on the reduction in goods and services tax on a range of its products to customers, a governm...

      By Garima Sharma
      /
    • Why are NAA profiteering orders getting stayed

      Why NAA is not being diligent on how hearings are done and orders are passed. 3 people do the hearing, 4 people sign the order. The Mumbai High Court uses that as basis and stays the NAA order. Sho...

      By Sridhar Mohan
      /
Share
Enter your email & mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)