As India’s new indirect tax regime turns one year next month, the Uttar Pradesh Goods and Services Tax ( GST ) department is likely to announce two parallel schemes to detect and check tax evasion, officials familiar with the matter said.
Firstly, a scheme will be launched to give cash rewards to those who help the department detect tax evasion. The second one aims at encouraging consumers to demand bills by giving them prizes through a periodical lucky draws. Besides, action will be taken against traders suspected to be evading taxes.
The reward scheme is patterned on a similar one run by the Central Board of Indirect Taxes and Customs (CBIC).
Under this scheme, there is a proposal to give a handsome reward to informers who provide specific information leading to seizure of illegal goods or detection of tax evasion, including wrong declaration of quantity, description, value etc.
“The informers will get cash reward in proportion to the tax evasion money realized due to their tip-off and the reward money may be 10-20% of the value of goods confiscated and penalty realised,” a senior official said.
Under the second scheme, the consumers will have the chance of winning prizes like TV sets, refrigerators, air-conditioners and bikes if they make it a point to demand bills for any purchase above Rs 500 and send the bills to the department on a WhatsApp number that will be made public.
“We will hold lucky draws of bills every month and the winners will be entitled to gifts in a move to inculcate into consumers the habit of demanding bills for anything they purchase,” the official said.
