GDP from the Ministry of Finance clarified to us that the viral message is false.
The government issued nine central tax (rate) notifications on July 13, 2022. These GST rate changes were effective from July 18, 2022. In addition, exemptions were removed on a few daily commodities. The government has notified that the revised rates for items face an inverted tax structure.
Amid this, a viral image on social media purports to show revised GST rates after shopping at Big Bazaar, D-Mart, Spencers and other malls. The mentioned tariff structure states that there will be a separate invoice for each Rs 1000. The tax breakdown mentions that there is 0% GST on purchases up to Rs 1000, 2.5% GST on one invoice from Rs 1000 to Rs 1500, 6% GST on an invoice of Rs 1500 to Rs 2500 and 18% GST on a purchase invoice of Rs 2500 to Rs 4500.
The message states that no GST will be charged on invoices below ₹1000, while the tax will increase as the amount increases.
The message is also circulating widely on Facebook.
We started our investigation to scour the new tax slab to find GST rates for purchase invoices at stores like Big Bazaar, D-Mart and Spencers. However, we could not find relevant details on GST tax rates on purchase invoices above Rs 1000. These are updated GST rates as per CBIC website.
We found that this post also went viral in 2017. D-Mart also posted a disclaimer on its Facebook page on July 8, 2017. The Facebook post states that GST rates are applied on each product and the rates for each product are based on the definition. in accordance with the rules laid down by the Indian Government Revenue Authority, and GST rates are not based on invoice value.
Then, Fact Crescendo contacted Kush Mohan Nahar of the union’s Ministry of Finance GDP who confirmed to us that the viral post was fake. He said there were no such tax brackets on the total bill amount. GST is applied on a particular type of category, it is not according to money installments. It should be noted that the GST is not applied to the total amount of the invoice, but to each product.
GST is an indirect tax that customers have to bear when purchasing goods or services, such as food, clothing, electronics, daily necessities, transportation, travel, etc.
Fact Crescendo found the claim made with the viral post to be Fake. GST rates are not based on the total invoice amount like income tax. GST rates vary depending on the type of product purchased. The GST board decides the rates for each product category.
Title:There is no GST charge on the total amount charged at malls
Fact check by: Drabanti Ghosh