Government set up a panel to check tax evasion and GST defaulters. A rectifying measure put into force by the administration regarding the decline of GST by 2.67% in September 2019 compared to September 2018. The centre and states have collected Rs 91,916 crore compared to Rs 98,202 crore in August 2019.
12 Member panel to solve GST Default
The 12 member panel, containing commissioners and central officers set to take corrective actions to enhance revenue immediately. The panel will instigate an investigation to identify offenders. Furthermore, they will discuss remedies to intensify enforcement activities against GST. Moreover, they would generate a wide list of suggestions to improve GST and prevent misuse.
Identification of GST Defaulters
Authorities plan to use fraud detection software to identify offenders. Data analysts will be extensively a part of this crew. Besides, this identification of duty invaders would be performed in a non-intrusive manner. Sales reported by businesses and traders under GST to be scrutinized further to find mismatches. Thus, the results obtained by the panel will report to the GST council within 15 days as decided in the first meeting held by the committee on 15th October.
Managing director of High Ground Enterprises Ltd (HGEL), Karan Arora availed input tax credit worth Rs 420 crore using fake invoices. In another case authorities found out after investigation that an Indore based businessman, Prashant Sharma took tax credit based on fake bills. Also, a Karnataka businessman from Tumakuru jailed for Rs 7.35 crore tax default.
The Government’s Priorities in Fixing GST
Government plans to ensure smooth exchange of information between GST, income tax and costumers. In addition, stern action against tax evaders and offenders. Government also plans to link Aadhaar with GST to further scrutinize tax offenders. Finally, a convenient filing of tax to compile revenue, a new return filing format that will come into force in April 2020.
These steps taken in the right direction by the government will be fruitful in diminishing tax offenders.