A simple 30-second check could help diners identify whether a restaurant is legally allowed to collect GST from them.
GST has become such a routine part of everyday spending that many customers barely glance at the tax component before paying their grocery, restaurant or dhaba bills. But a simple 30-second check could help diners identify whether a restaurant is legally allowed to collect GST from them. A chartered accountant (CA) has now highlighted an important GST check that customers can perform before settling their restaurant bills.
On September 8, X user Pratik Bharda shared an incident from a dhaba in Udaipur, where his bill amounted to Rs 641.90. The bill included Rs 32.10 as GST, with 2.5% CGST and 2.5% SGST.
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However, instead of paying immediately, Bharda decided to verify the restaurant’s GST registration status. He checked the GSTIN mentioned on the bill through the official GST portal.
“Before I paid, I did what I always do. Opened https://gst.gov.in. Typed in the GSTIN from the bill. Hit Search. Status: Regular Taxpayer. I paid without a second thought,” he wrote.
The incident highlights an important distinction that many customers may overlook: whether a restaurant is registered as a Regular Taxpayer or under the GST Composition Scheme.
According to Bharda, businesses registered under the Composition Scheme cannot separately charge GST to customers.
“A Composition taxpayer CANNOT collect GST from you. Ever. Under the GST Composition Scheme, a dealer pays a flat tax to the government from their own pocket – 1% for traders, 6% for service providers. They cannot add GST to your invoice,” he wrote in the X post.
This means customers should not simply assume that every GST amount added to a restaurant bill is legitimate. Checking the GSTIN can help establish the taxpayer’s registration status before making the payment.
Bharda further warned customers about what happens when a composition taxpayer separately collects GST.
“The moment they do, that amount is being collected from you with zero legal basis. It does not go to the government. It stays with the owner. That is not a tax. That is a collection.”
How To Verify GST Before Paying Restaurant
Customers can visit the official GST portal. Select the taxpayer search option. Enter the GSTIN or PAN mentioned on the bill. Check whether the business is listed as a Regular, Composition, Suspended or Invalid taxpayer. If a Composition taxpayer has separately charged GST, customers can question the charge and raise the matter with the GST authorities.
The CA advises not to blindly accept the GST amount printed on a restaurant bill. A quick GSTIN check can help customers understand whether the business is authorised to collect GST separately.