Probe ordered against restaurant for charging exorbitant GST

Shimla/Parwanoo: Himachal Pradesh Chief Secretary Ram Subhag Singh on Monday ordered a probe against a restaurant run by m/s Timber Trail Resort at Parmanoo for allegedly charging exorbitant or excess GST.
The CS ordered Secretary Excise and Taxation Mr Subhasiash Pabda to look into the matter.
The Complaint, Ajay Jagga who is Ex-member, Distt Consumer Protection Council, UT Chandigarh alleged that the rate of GST on sales by eateries is five per cent, whereas on visit to the restaurant of Timber Trail Resorts, Pawanoo on last Friday (May 27), it was found that the place was charging GST at rate of 18 per cent i.e. 9 pc under the State (HP) GST and 9 pc under the Centre GST., whereas the rate of 5 pc i.e. 2.5 pc State (HP) GST and 2.5 pc under Centre GST is the norm.
The charging of GST at the rate 18 pc instead of at the rate 5 pc in the premises of a restaurant appears to be not in accordance with law and needs probe, as lakhs of tourists are paying bills in the state of H.P., every day. He said that this appears to be a clear case of imposition of unjustified costs on the consumers and if someone does it then it tantamount to restrictive and unfair trade practices.
Hundreds of consumers visit the restaurant everyday, so huge amount is involved. Higher rate of tax (in an arbitrary manner) from commercial point of view should not overrule the consumer interest.
Himachal is Dev Bhoomi and is a tourist state but if the tourists are taken for ride like this or are exploited like this, then this brings a very bad name to the state as well, not only in India but internationally.
He said that the case shows urgent need to examine or probe the matter by Consumer Affairs Department and by State and Centre GST Department and penal action is needed in public interest. He said that it must be ensured that the consumers are not charged higher GST rather the rate i.e. 5 pc in the entire state of H.P,. Further the excise department may also examine whether 5 pc is being paid or 18 pc (With ITC set of), if these eateries honestly pay 5 pc the revenue collection would be much more than what is being shown as 18 pc (With ITC), he added. (UNI)