Govt Grapples with Rs 34,000 crore GST puzzle over tax mop-up: The authorities are struggling with an Rs 34,000-crore goods and service tax (GST) puzzle amid fresh fears in the Government of businessmen evading taxes. By making an analysis of various returns which are made between months of July and December with the GST Network has indicated that the scale of under-reporting of tax liabilities could be as much as Rs 34,000 crore.
This issued was being raised at Saturday’s GST Council meeting and notices can be issued to various traders and businessmen who have shown different liabilities in GSTR-1 which is currently largely used for the information purposes and GSTR-3B. The idea is to focus on those who have shown a large difference in the two filings, as per the sources. In many cases, details of the suspects will be shared with the states for action after keeping in mind details of various taxpayers.
There are many areas of suspicion. As per the income tax return filings analyzed by customs authorities, they have disclosed in some cases, the prizes of the imported goods were shown lower. For example, the prize of the smartphone has been shown 8,000 instead of Rs 12,000, an official explained. This step was taken in order to pay lower GST at every stage of the sales process.
GST Collections have remained low just because the government has failed to implement several of the planned anti-evasion measures like invoice matching to track the value of sales and purchases or e-way bills to keep tabs on the movement of goods from factories to showrooms.
According to Tax consultants said that there would be valid reasons for the difference since at the time of payment of taxes, input tax credit accumulated over the current periods.
Despite variations, such details are not given at the time of submitting GSTR-1, which is like a sales register with invoice details entered. One of the section at Central Board of Excise and Customs also advised that there was a need to examine the data more precisely as red flags had been raised in past too but had not provided any result. “Physical copies of the returns need to be compared to ascertain the reasons for the difference,” one of the senior officer said. “The comparison of revenue figures from the returns filed would provide pointers to cases of under-payment of GST in terms of the increased focus on analyzing the data patterns emerging from the various GST returns filed by businesses,” said M S Mani, a partner at consulting Deloitte India.
Thus, Govt Grapples with Rs 34,000 crore GST puzzle over tax mop-up. Government is currently looking over to make GST as simple as possible. Certain easier rules for GST will be released soon.