A basic GST check before settling a restaurant bill can help diners identify suspicious charges, ensuring they aren’t paying unlawfully, experts advise.
A simple GST check before paying a restaurant bill can help diners avoid charges that may not be lawful, according to a chartered accountant whose advice has been circulating on social media. The guidance centres on verifying the GST identification number, or GSTIN, on the bill and checking whether the business is registered as a regular taxpayer or under the composition scheme.
The warning was prompted by a bill at a dhaba in Udaipur that included GST of Rs 32.10 on a total of Rs 641.90. In a post on X on 8 September, Pratik Bharda said he opened the official GST portal, entered the GSTIN from the bill and confirmed the outlet was a regular taxpayer before paying. He argued that if a business is registered under the composition scheme, it cannot separately collect GST from customers.
Tax guidance on GSTIN verification says consumers can check whether a number is valid, what type of taxpayer is registered and whether the entity’s status is active, suspended or invalid. Separate explainers on restaurant GST note that tax treatment depends on the type of outlet and the scheme it uses, while composition taxpayers follow a simplified regime with flat tax payments to the government and tighter compliance rules.
Bharda’s point is that customers should not assume every GST charge on a restaurant or dhaba bill is legitimate. If a composition taxpayer has added GST separately, he said diners can challenge the charge and report it to tax authorities. For consumers, the practical lesson is straightforward: take a few seconds to verify the GSTIN before paying.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
