GST Day: Piyush Goyal Urges Consumers to Demand Invoices for Their Purchases in Order to Check for the GST Escape

NEW DELHI: On the eve of the completion of a year of implementation of the GST, Finance Minister, Piyush Goyal, appealed to consumers for that they insist on the invoice of each purchase, which would help the government to avoid tax evasion. Reduce the tax rate on each item by up to 4-5 percent.

He added that the government would create a three-digit telephone hotline for consumers to allow them to file lawsuits against wandering traders or any other form of tax evasion.

Presented as the most important indirect tax reform since independence, the Goods and Services Tax (GST) was introduced last year on July 1.

"I want to appeal to people that they ask for a bill every time they buy goods … If you start asking for a bill … there's has an awareness, so we can reduce rates by 4-5 percent for each item (under GST), "Goyal told reporters.

He said that if a store said it would sell at a lower price if the consumer did not require a bill, the consumer should immediately file a complaint, he said.

"We will soon provide a simple three-digit number that will serve as a call center where clients can complain, we will ensure the total confidentiality of the complainant," Goyal said.

The effort will be to launch the hotline within 15 to 20 days, he added. A national campaign could also be launched to educate consumers on demanding bills for purchases made.

"If everyone starts giving tickets then the competition will be about quality and customer service and not about the ability to deceive the system," said Goyal. He added that the government wants to reduce the burden of taxation on consumers, but that revenues must increase and that state support is also needed to reduce rates where it is essential.

With the formalization of the economy, the government will have more room to cut rates, he said. Goyal has also badured small businesses if they are having problems, so they can write to him and this will be solved.

He said that amendments would be introduced to the GST law in the monsoon session to increase the compositional scheme threshold of the current crore of Rs 1. The GST Council had decided last year to Increase the threshold to Rs 1.5 crore and also decided to amend the law to raise the statutory threshold to Rs 2 crore.