Last night we went for a casual meeting to a local coffee shop. When we were done with the meeting and the coffee, we were presented our bill. Like others, we were excited to see CGST and SGST. It was our first bill after GST came into force.
But, we realized that there was no GST number on the bill. We asked the waiter and he said he will check. After around 5 minutes, the manager came and told that their accountant has not updated their invoicing software and hence the bill didn’t print the GST.
We could smell an obvious fraud. The bill had GST but didn’t have GST number.
One can claim input tax by referring to the tax paid against a particular GST number. The manager waived off our tax saying he will update their accounting system and we can pay during our next visit.
Whenever you are purchasing/consuming something for your company or an official purpose, ensure that the bill has a GST number so that you can claim it in your input tax.
This is a natural benefit that GST allows, a by-product being that tax compliance will have to increase. For how long can a coffee shop charge GST but not actually deposit it to the government?