Skip to main content

Tax officials may go for searches, surveys to widen base under GST

Tax officials may go for searches, surveys to widen base under GST
In its attempt to bring more companies under the goods and services tax (GST) umbrella, the tax department is planning to conduct searches and surveys across the country, a senior tax official told ET.

The searches could start as early as next week and would focus on checking if any company was deliberately avoiding to come under GST umbrella or if there is a genuine problem, said the official. Tax officers would conduct physical verification of premises in several areas and check the GST certificates in cases where they have been issued.

The move comes about a week after a meeting of senior tax officials with Prime Minister Narendra Modi and finance minister Arun Jaitley in New Delhi.

"As you know that the government is working towards increasing the tax base," the official said. "So we recently received directions that new registrations under GST have to be increased. In that regard we will conduct surveys across the country to find out the eligible businesses that have still not registered with us. So our officers will be soon on field to get this moving."

Industry insiders said many companies and businessmen, especially in some unorganised sectors, are deliberately avoiding to come under GST because they fear tax sleuths would go after their past unpaid taxes.

Experts welcomed the government's push to increase tax base but said it should not lead to harassment of people with genuine issues. "I don't see anything wrong with searches as it's obvious that the government wants to expand the GST base and they want to come hard on people who are evading taxes," said Pratik Jain, national leader -indirect tax, at PwC India.

"But there should be some guidance by the GST Council in the form of a circular or instruction to ensure that there is no harassment at the ground level and officers differentiate between people evading taxes and genuine problems a company may be facing," he said.

Under the current push, tax officers would visit premises of several businesses, especially in the industrial areas. In some way, officers have already started doing this. ET had first reported on July 8 that about 200 senior IAS, IRS and IFS officers have been asked to check if essential commodities are available across cities and small towns and if any noticeable price trends are visible.

These officials are going around in local markets from Vadodara in Gujarat and Mayurbhanj in Odisha to Rajouri in Jammu & Kashmir and Krishnagiri in Tamil Nadu to check whether GST is being implemented as intended. In one such incident, a cloth retailer in the National Capital Region was reportedly fined Rs 20,000 for selling shirts without paying GST on that.

"Such fines are required; there has to be some fear if anyone is breaking the law," said a second tax officer aware of the development. "Some people have also found loopholes and are staying out of GST net," the officer said.

The tax department's renewed push comes weeks after the Haryana excise and taxation department asked its tax officers to conduct searches on companies in the state.

In a circular issued on August 10, the department mentioned eight points that tax officers have to follow along with a timeline for each process.

The Economic Times, New Delhi, 15th September 2017s

Comments

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...

After RBI rate cut, check latest home loan interest rates of top banks for loans above Rs 75 lakh

  The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points from 6.50% to 6.25% in its monetary policy review as announced on February 7, 2025. After the RBI repo rate cut, banks such as SBI, Canara Bank, PNB, and Union Bank among others have cut their repo linked lending rates. Most other banks are also expected to cut their lending rates in line with the RBI rate cut. After banks cut their lending rates, their home loan borrowers will have to pay less interest. Normally, when a lender cuts the lending rate, borrowers get two options: Either to go for a reduction in EMIs or reduce the tenure of the loan. The second option will help the borrowers clear their home loan outstanding faster. In case, the borrower goes for reduction in EMI then the lower lending rate of the lender would mean lower Equated Monthly Installment (EMI) for borrowers.   EMI is the amount you will pay on a specific date each month till the loan is repaid in full.A repo rate-linked home ...

GST collections rise 9.9% to exceed Rs 1.96 trillion in March 2025

  Gross GST collection in March grew 9.9 per cent to over Rs 1.96 lakh crore, government data showed on Tuesday. GST revenue from domestic transactions rose 8.8 per cent to Rs 1.49 lakh crore, while revenue from imported goods was higher 13.56 per cent to Rs 46,919 crore. Total refunds during March rose 41 per cent to Rs 19,615 crore. After adjusting refunds, net GST revenue stood at over Rs 1.76 lakh crore in March 2025, a 7.3 per cent growth over the year-ago period.       - Business Standard 02 th March, 2025