The main crux of the whole embezzlement is a non standardized billing system and non linking with GST server. More than 90% customers in restaurants are individuals, who don''t have GST registration, so they don''t file GSTR1, so if the restaurants collect taxes from customers and don't pay it to the Government, then who is going to catch them and how?
So, it''s evident that 18% GST, which the restaurants collected from the customers were actually added in their earning. So, a reduction in GST rate has directly affected the huge amount of illegal earning of the restaurants, so now they have no other way but to increase the prices to match the extra bucks, which they had earned since GST implementation.
GST billing will be successful if a centralised billing system is used and a bill is generated with GST index no linked with their central server. This will make sure that restaurants who collect GST will be forced to pay it to the govt.
