Now Reading: Chit firm penalised for collecting GST without mentioning GSTIN
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Chit firm penalised for collecting GST without mentioning GSTIN
The Thrissur Consumer Disputes Redressal Commission has held Bhagyaratna Kuries (India) Pvt Ltd liable for deficiency in service and unfair trade practice for collecting Rs 7,800 as GST from a subscriber without…
The Story in Brief
The Thrissur Consumer Disputes Redressal Commission has held Bhagyaratna Kuries (India) Pvt Ltd liable for deficiency in service and unfair trade practice for collecting Rs 7,800 as GST from a subscriber without mentioning the GSTIN or other mandatory tax details on the receipt. The commission, however, refused to order a refund of the amount, noting there was no evidence that the company was not GST-registered or had failed to deposit the tax with the government. The complaint, filed by E.P. Sabu under Kuri No 182, was partly allowed, with the firm directed to pay Rs 10,000 as compensation and Rs 10,000 as litigation costs, along with 9% annual interest from the date of filing.
The Indian Opinion
The consumer commission rightly flagged the lack of transparency in charging GST without displaying the GSTIN. However, it let the chit firm off the hook for the refund, citing no proof of illegal collection. This sets a problematic precedent: firms can collect taxes opaquely, keep the money, and only face a small penalty if caught. The real test is whether the tax department will now audit Bhagyaratna Kuries to verify if the Rs 7,800 was actually remitted to the government. Without that follow-through, the order becomes a mere slap on the wrist.
Source: livelaw.in
This story was synthesised by AI from the source linked above.
