From what I have heard the LBT officer assigned to the Ward has 3 clerks who carry laptops with them. If he finds any discrepancy in what you have reported and what he investigated he is then authorized to directly serve a notice to the retailer to pay the fine ... I was like WTF is he the magistrate now?? This way they will always come and rip off the retailers. Now you see how it gives rise to corruption and malpractices. No matter how careful one is there is some or the other thing which is missed out(not purposely). Also they can pose as customers and ask for invoice. Now its a offense to sell at a higher price than the MRP. But most of the Chinese imports have MRP of a fraction of the cost. The retailer cant sell that at MRP. Nor cant he stop selling such items as most of them are in demand and not made in India.The current VAT system certainly screws businessmen . Since LBT is also Levied on similar lines i am with the shopkeepers on this issue .
Do you know even if there is a mismatch of 10Rs in the online VAT Returns if you have to pay 10,000 RS As penalty for every month in which error is there .