GST: Delhi Dept launches Special Drive against Tax Evasion: Sends Notices to 51,500 Traders

GST Evasion - GST - Companies

In a bid to curb tax evasion under the Goods and Services Tax ( GST ) regime, the Delhi government on Friday launched an extensive drive against tax and return defaulters. The move aims at checking tax evasion and bridge the revenue gap.

“A detailed strategy has been chalked out by the department and numerous instructions like identifying dealers carrying out business without registration and rigorous follow-up of notices to non-filers of return have been issued to GST officers of the state tax department,” VAT Commissioner H. Rajesh Prasad said giving details of the drive.

The instructions include identification and action against taxpayers claiming excessive Input Tax Credit (ITC) in GSTR-3B filed as compared to GSTR-2A, action against taxpayers showing lesser output tax liability in GSTR-3B filed as compared to GSTR-1, scrutiny of Input Tax Credit (ITC) claimed by the taxpayers in TRAN-1 form and action on the taxpayers claiming excessive ITC.

The drive will also include physical verification of at least 10 per cent of new taxpayers to curb issuance of bogus invoices, physical verification of old or migrated taxpayers in suspicious cases, creating mobile squads to check the system of e-way bill and invoices during the movement of goods within Delhi, and verification of the returns filed by work contractors in Delhi.

The Commissioner said that the department will keep an eye on suspicious and unlawful trading activities of dealers such as bogus billing and non-carrying of e-way bills.

“As of now, notices have been issued to the 51,500 taxpayers who have not filed GSTR-3B returns for the tax periods concerned,” the statement by the department said.

Besides, it said, 135 notices have been issued in respect of an excessive claim of ITC in GSTR-3B by the taxpayers, and 837 notices have been issued for showing lesser output tax liability in GSTR-3B returns by the taxpayers as compared to GSTR-1.

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