Avoid Restaurant GST Scams: Ujjawal Pahwa's Expert Tips

Sometimes restaurants charge GST and trick you into paying more when they shouldn't. Here's how you can avoid these billing scams with the guidance of financial expert Ujjawal Pahwa.

The Scam

A common scam is when restaurants add GST to your bill despite not having a GST number. In some cases, the restaurant may have a GST number but still does not have to pay any GST. This happens if a company registers under a composition scheme. Under this scheme, businesses earning less than Rs 1.5 crore are not required to collect GST from their consumers.

How to check GST registration?

Follow these simple steps to avoid paying additional GST:

• Visit GST Portal: gst.gov.in.
• Search Taxpayer: Click on "Search Taxpayer" and select "Search by GSTIN/UIN".
• Type GST Number: Verify registration by entering the GST number indicated on your bill.

What should they do next?

If the GST number is invalid or the restaurant is not GST registered, no GST should be charged. If you discover any problems, tell the restaurant and request them to fix the bill. It is important to be vigilant and protect yourself from unnecessary expenses.

You may also ask the restaurant about their GST status before ordering. This step might help you avoid being shocked when you get your bill. Always save your receipt and verify it to ensure that all payments are correct.

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So, the next time you eat out or go to a party, pay attention to the bill to ensure they are not overcharging. Following these procedures can help you pay what you owe and avoid payment fraud.