Sambalpur: Businesses Allegedly Promote Cash Transactions Over Digital Payments; Accused of Exploiting Customers Under GST Pretext

Sambalpur: Businesses in Sambalpur city are accused of engaging in widespread GST evasion while simultaneously overcharging customers for food, drinks, and other items. Several establishments, particularly hotels, are reportedly using deceptive practices to evade taxes while burdening customers with high rates.

Government Promotes Digital Payments, But Cash Dominates

The government is actively encouraging digital payment methods across offices and service sectors. Most people now rely on UPI apps like PhonePe, Google Pay, Paytm, and others, along with credit and debit cards for transactions. As a result, they prefer to carry minimal cash, using it only for emergencies.

However, some businesses in Sambalpur have resisted adopting digital payment systems. Instead, they promote cash transactions, raising suspicions of tax evasion.

Hotels Refuse Digital Payments, Insist on Cash

A prominent hotel on VSS Marg in Sambalpur prominently displays a notice stating that bills must be settled in cash only. This change reportedly occurred a few months ago to dodge GST obligations, despite previously offering digital payment options.

Recently, some tourists faced significant inconvenience at this hotel. Without enough cash to settle their bills, two group members had to go to an ATM. When the nearest ATM malfunctioned, they had to find another, wasting time and effort.

GST Evasion Through Employee Accounts

Investigations have revealed that several businesses collect GST from customers but fail to remit it to the government. To evade taxes, they open bank accounts in their employees’ names and use these accounts for transactions.

At billing counters, multiple QR codes are displayed for payment. While one code belongs to the business, others are linked to employee accounts, allowing them to divert funds.

Overcharging While Evading GST

Many businesses overcharge customers for food and other items but hesitate to pay the corresponding GST. Some even pocket the GST amount collected from customers. This practice has sparked frustration among customers and scrutiny from authorities.

Need for Transparency and Accountability

The push for digital transactions must be matched by strict enforcement to prevent such exploitation. Customers demand better transparency and a commitment from businesses to follow the rules, ensuring fair practices and government compliance.