Citizens’ Group Suggests QR Bill Scan System To Tackle GST Evasion In Restaurants

A citizens’ rights organisation has proposed a nationwide QR-code-based invoice verification mechanism aimed at curbing alleged GST evasion in the restaurant and food services sector.

In a representation submitted to Union Finance Minister Nirmala Sitharaman, the group suggested the introduction of a system named “Bharat Bill Reward” (BBR), under which customers can verify restaurant bills through a government-linked mobile application by scanning QR codes printed on invoices.

According to the proposal, every restaurant bill would carry a GSTN-authenticated QR code connected directly to government servers. Customers scanning the code through the BBR app would instantly verify whether the transaction had been officially recorded under the GST system and would become eligible for daily lottery-based rewards.

The organisation claimed that GST evasion in the restaurant and food retail sector could amount to thousands of crores annually through practices such as non-billing of transactions, deletion of invoices from point-of-sale systems, use of parallel billing software and splitting turnover across multiple GST registrations.

The representation argued that current enforcement measures, including raids and surveys, are largely reactive and often identify evasion only after long periods. The proposed system, it said, would enable real-time verification and preventive monitoring by involving customers directly in the compliance process.

Supporters of the proposal believe the mechanism could improve transparency, increase GST collections and encourage consumers to insist on genuine invoices. They also pointed to similar invoice-verification or lottery-linked tax compliance systems implemented in countries such as Taiwan, Brazil, Portugal and China.

Government officials and tax authorities are yet to formally respond to the proposal. However, recent Income Tax Department surveys and GST investigations into alleged “vanishing bill” practices in the restaurant sector have intensified discussions around technology-driven tax compliance measures.

Industry stakeholders have expressed mixed reactions. While some restaurant owners believe the system could create fair competition and discourage tax evasion, others have raised concerns over additional compliance requirements, integration costs and operational challenges for smaller establishments.

Technology and billing software companies may also face increased scrutiny, particularly over allegations of misuse of invoice deletion features in point-of-sale systems.

The citizens’ group urged the Finance Ministry and GST authorities to examine the proposal as a citizen-powered initiative to strengthen tax transparency and improve compliance in India’s rapidly growing food services sector.