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CS order probe against Timber Trail Resort to charge exorbitant GST

Himachal Pradesh Chief Secretary Ram Subhag Singh today ordered a probe to find that resturant run by m/s Timber Trail Resort at Parmanoo was charging exoribitant or excess GST against the norms. The CS ordered Secretary Excise and Taxation Mr Subhasiash Pabda to look into it and inform the Complaint about 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 5 per cent whereas on visit to the restaurant of  Timber Trail Resorts, Pawanoo on last Friday(27-05-2022), it has been found that this taxable person is charging GST at rate of 18 prr cent i.e. 9 pc under the State (HP) GST and 9 pc under the Centre GST., where as the rate of 5 pc i.e. 2.5 pc State (HP) GST and 2.5 pc under Centre GST. 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., everyday. He said that this appears to be a clear case of imposition of unjustified costs on the consumers and if someone does then it tantamount to restrictive and unfair trade practice. Hundreds of consumer are visiting restaurant everyday, so huge amount is involved. Higher rate of tax (in an arbitrary manner) from commercial point of view should not over rule the consumer interest.Himachal is Dev Bhoomi and is 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

emergent need to examination or probe matter by Consumer Affairs Department and by State and Centre GST Department and penal action 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 the 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.

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