What to do when shopkeeper does not issue Receipt?

CONSEQUENCES OF NOT ISSUING BILL/INVOICE/RECEIPT BY TRADERS/ SERVICE PROVIDERS

Shopkeeperr did not issue Bill or invoice or receipt– What to do?

Consumers purchasing goods in India are generally faced with a common problem i.e. non-issuance of invoice or bill by the shopkeeper. Sometimes, the consumer himself chooses not to collect the bill seeking for a discount from the trader. But the real problem arises when the consumers are affected with quality of goods or standard, warranty, quantity, etc. Purchasing a product or utilizing a service without a proper bill or an invoice defuses the rights of a consumer due to lack of evidence to prove that it has been purchased from a particular shop. In these circumstances, the trader not only escapes the liability of selling sub-standard, deficient goods, fake products, etc before any court of law but also causes huge loss to the ex-chequer by escaping taxes to be legitimately paid to the government.  A number of complaints have been raised by consumers in the past in Consumer Forums that Trader/Service Provider has refused to issue an invoice or bill for a product purchased. But victims of consumer fraud have not received any relief from the courts in the absence of any proof of payment or consideration. The consumer does not acquire the right to complain under the law and the receipt/invoice/

It is said that “Consumer is king” and while purchasing goods, the consumer has every right to demand a proper tax bill/invoice from the shopkeeper/trader/seller but what could one do when the shopkeeper/trader does not give a receipt against the product purchased.

Fortunately, Section 31 of the Central Goods and Services Act 2017, safeguards the rights of consumer which obligates the shopkeeper to issue an invoice for supply of goods before or at the time of removal of goods for supply to the recipient consumer where the supply involves movement of goods. Therefore, a trader registered under GST while delivering taxable goods or must make available to the consumer, a tax invoice, showing the description, quantity and value of goods, the tax charged and other particulars. Failing which, a Complaint can be filed in the prescribed form by the consumer with the Anti-Profiteering Authority. A complaint may also be addressed to the Commissioner seeking action against the trader.

Under the CGST Act, where a trader who supplies any goods or services or both without issue of any invoice or issues an incorrect or false invoice with regard to any such supply; or issues any invoice or bill without supply of goods or services or both in violation of the provisions of the Act is liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded

Further, supplies  any  goods  or  services  or  both  without  issue  of  any  invoice,  in violation of the provisions of this Act or the rules made thereunder, with the intention to evade tax or issues  any  invoice  or  bill  without  supply  of  goods  or  services  or  both  in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax; may lead to imprisonment upto 5 years.

The traders have illegally benefitted all these years by avoiding payment of tax without disclosing proper income to the Tax authorities. Although, registration of a trader under the CGST Act is mandatory if his turnover exceeds Rs.20 Lakh, the CGST Act is a boon in disguise to all consumers and is a powerful tool that could be used by consumers to complain against traders evading tax.