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Profiting from GST

It has been noticed that confectioners in Delhi are charging Goods and Service Tax (GST) from customers without issuing any invoice. An invoice is issued only when it is specifically asked by the customer.

GST thus adds to the profits of confectioners selling unbranded sweets. This is the case with other commodities taxable under GST but which are not branded. Even in other trades, items are sold in bulk without an invoice.

However, traders of branded good could be issuing consolidated invoices at the end of the day, since their purchases are accounted for.

GST evasion happens in the case of unbranded products which are not packaged, and the law is taken for the ride.

Central and state governments should devise ways to ensure invoices are given to customers. For example, confectioners can be directed to stick a copy of GST invoices on every box of the sweets sold.

Advertisements should apprise people of such traders. Businesses must also be advised and warned against cheating the law.

­­-Madhu Agrawal, India