Rampant GST evasion in service sector of India
90% of the service providers are still issuing invoices like the one attached.
These guys are providing services to companies like bajaj electricals and these companies shake hands regularly with ministers and top officers.
But they dont care to create tax compliance in their networks.
LocalCircles should govt to act against all major companies whose service providers still dont generate GST bills. more
In some other post it was stated that airlines are charging extra for digital payments. When bigger ones are looting will smaller ones remain silent? we have very good rules and regulations but not effective in implementation. let us not forget that many of us also prefer purchase without bills. To be more specific most of those bills / receipts are fake. They never go to records. Pl observe. more
With one nation one tax in mind why can't government collect GST on MRP at the point of manufacture itself without any input benefit atleast starting with big brands and registered units for consumer goods . E-invoicing was another good step but implementation delayed now. And regarding service sector, I am exactly not sure, but some of my CA friends told me that some turnover relaxation is there in GST for service sector also. more
Go to any local toy shop with Chinese Toys and games. The MRP mentioned as 10 or 100 but they charge 30 to 40 times more with no invoices. If you argue they will say to go to next shop. more
I am a senior citizen and in these days of COVID I do not go out and send my driver to help out. These days we are paying for almost all purchases from small grocery stores, big companies/stores, mobile repair shop, spectacle glasses etc through digital means. Why can’t the big companies prescribe digital payment method after service/repair as the payment confirmation is as fast as paying cash. Digital payment will also ensure payment of GST. Govt must mandate under GST rules to make digital payment mandatory. more
The Bureaucrats who drafted the GST Act & Rules have left many loop holes whether knowingly or unknowingly which are being used by Business to avoid GST and claim fraudulent refund of input tax credit.
The biggest loop hole is provision of Input Tax Credit which is 400% of GST collection. This indicates the magnitude of possible fraud.
Even now Government may consider levy of 5% on all goods and services without Input Tax Credit and make it compulsory for every supplier/service provider to register without linking it to turnover.
Luxury goods can be charged 15% GST and without input tax credit the total tax burden on end consumer may be 25 to 30%. more