Rs 2,000 cr GST evasion unearthed in 2 months
Team Udayavani, Jun 27, 2018, 7:16 PM IST
New Delhi: The GST investigation wing has detected tax evasion of over Rs 2,000 crore in two months, and data analysis reveals that only 1 per cent of over 1.11 crore registered businesses pay 80 per cent of the taxes, a senior official said today.
CBIC member John Joseph said alike small businesses who are making mistakes while filing GST returns, multinationals and big corporates too have slip-ups.
“If you look at the way tax revenues are paid, it gives an alarming picture. We have registration of more than 1 crore businesses. But if you look at where the tax is coming from, it is less than 1 lakh people paying 80 per cent of the tax, one does not know what is happening in the system, it is an important thing to study,” Joseph said at an Assocham event here.
Joseph, who is also the Director General of Goods and Services Tax Intelligence (DG GSTI), said the analysis of composition dealers data shows that most of them have an annual turnover of Rs 5 lakh. “This shows that a lot of compliance is required.”
Under the composition scheme, traders and manufacturers are allowed to pay taxes at a reduced rate of 1 per cent, while restaurant owners have to pay at 5 per cent rate. The scheme is open for manufacturers, restaurateurs and traders whose turnover does not exceed Rs 1.5 crore.
Joseph said the investigation has revealed that a modus operandi is being followed whereby fake invoices are being generated for goods which have not been supplied at all.
Based on these invoices, some entities are claiming input tax credit. Besides, without actually exporting goods, some entities are claiming GST refunds based on fake invoices.
“Government revenue is being taken away. We in a short period of 1-2 months have detected over Rs 2,000 crore evasion which could be only the tip of the iceberg,” Joseph said, adding the GST Intelligence wing will step up efforts in the days ahead.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
RBI announces MPC schedule for FY25, first rates decision on April 5
Seven out of ten Indian shoppers say they would happily receive product deliveries without additional packaging
Renault Nissan to launch four new products, expand product portfolio
Sensex, Nifty rebound on heavy buying in Reliance Industries, HDFC Bank
IndiGo to fly more international routes, destinations; aims doubling size by 2030: CEO Pieter Elbers
MUST WATCH
Latest Additions
Rs 20.14 cr unaccounted cash seized in poll run up in Karnataka
HC grants bail to man held for sexually assaulting ‘friend’ at Mumbai beach in 2021
Congress’s Kolar conundrum remains unsolved despite CM, DCM attempt to quell dissent
Mangaluru: Illegal slaughterhouse raided by police, Three arrested
‘No evidence of wrongdoing’: CBI closes UPA-era Air India aircraft leasing