Chennai: A consumer commission has pulled up restaurant in the city for collecting Goods and Services Tax (GST) without furnishing a valid GST registration number on its bill, holding that the practice amounted to both an unfair trade practice and deficiency in service. The commission directed the eatery to pay ₹10,000 as compensation and ₹2,000 towards litigation costs to the complainant, while also ordering it to comply with billing norms in the future.The order came on a complaint filed by T Gowtham, who purchased three food items worth ₹550, with GST of ₹26.18, from Smoky Curve restaurant at Perambur on April 26 last year. The tax invoice did not mention the establishment’s GST registration number. When Gowtham asked about it, the cashier allegedly attributed it to a technical issue and wrote a number on the back of the bill, saying it was the GST number. On verification through the GST portal, Gowtham found that the number belonged to an “SKS Hardware” and not the restaurant. He complained that the eatery had illegally collected GST and refused to refund the amount despite repeated requests, and approached the District Consumer Disputes Redressal Commission.The restaurant denied Gowtham’s claims, citing a software or clerical error. It also said the complainant had behaved aggressively and filed the case with dishonest intension.Rejecting the defence, the commission observed that once GST is collected, it is the trader’s responsibility to prove that it possesses a valid GST registration and has lawfully collected and remitted the tax. As the restaurant failed to produce its GST registration certificate or statutory records despite repeated opportunities, the commission drew an adverse inference against it. It held that the dispute was not about the ₹26.18 collected but about the legality of collecting tax without proper authority, directing the restaurant to issue compliant tax invoices in future or face further consequences.
