Indian Tax Solution

1,000 cases booked; multiplexes, malls & star hotels in net over GST fraud

HYDERABAD: After receiving several complaints of exploitation by shopkeepers in the name of Goods and Services Tax (GST), legal metrology department officials have conducted raids at malls and multiplexes and booked over 1,000 cases for collecting GST over maximum retail price (MRP). Commissioner, civil supplies, and controller, legal metrology , CV Anand said GST frauds were reported at several places from local shops to shopping malls and multiplexes.

"In the last six days, legal metrology department has conducted over 5,000 raids at malls, multiplexes, star ho tels, restaurants, bars, sweet shops and other business establishments. Imposing GST on goods that are not under its purview, charging GST over MRP and violation of GST rules are some of the issues that came to our noti ce," Anand said, adding the raids would continue. 

"If anybody is caught charging GST over MRP, the penalty will be from Rs.2,000 to Rs.25,000. If a person is caught for repeat offence, then the penalty will be double," he added.

The legal metrology officials said that initially they had planned to conduct raids for a week, but with rising number of complaints, they have decided that raids would continue for another week.

Anand further said 1,062 cases were booked in the past one week and a penalty of Rs.10.62 lakh slapped on erring business establishments.

Of the total cases, 700 cases were registered in Hyderabad. Cases were registered against Hyderabad Central, PVR Cinemas, KFC, McDonald's, Prasads Imax, Subway , Sujana Mall in Kukatpally, Blue Fox restaurant, Shanbagh hotel, Golkonda Hotel and Park Hotel.

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