Skip to main content

Taxmen slap big penalty to check evasion of GST

Taxmen slap big penalty to check evasion of GST
A fine of 100,000 per cent is something few people would have heard of, or even thought about. A trader in Andhra Pradesh was recently asked to cough up more than that for not paying the goods and service tax.

In a show cause notice, an Andhra Pradesh tax officer has asked the said trader to pay Rs 20,000 in fines after he omitted Rs 15 GST in a bill. “It’s clearly established that you wilfully violated the provisions (of GST law)…a punishable offence,” the notice said.
This comes about two months after the government had asked almost 200 government officials across the country to go on a shopping spree and identify traders and shopkeepers who were flouting GST norms.
ET was the first to report on July 8 that the government has deputed 200 senior IAS, IPS and IRS officers across cities and small towns as sleuths to identify businessmen, wholesalers and retailers violating the norms of GST.
It seems these officers have now started reporting such cases to the relevant tax officials and the latter has begun to crack down on such traders.
“During the visit to your business premises you have sold one ready-made shirt worth Rs 300 to a customer and collected the full amount, but failed to issue tax invoice, and thereby, evaded GST,” the tax notice issued to the trader on September 5 read. ET reviewed a copy of the notice.
The quantum of fine is not defined under the GST law and is at the discretion of tax officers.
However, some industry trackers said going after traders in such a manner may keep many small traders and businessmen away from GST.
“Ideally no penalty should be levied for minor transgressions as the law is of recent vintage and there could be inadvertent mistakes committed initially by taxpayers,” said MS Mani, partner at Deloitte India. “It would be better to encourage taxpayers who have been out of the indirect tax fold to come into the GST framework without any fear of penal action,” he said.
“The penal provisions can be invoked once taxpayers are familiar with its provisions and current issues being faced  by taxpayers are settled,"said Mani.
The Economic Times, New Delhi, 28th September 2017     

Comments

Popular posts from this blog

Deposit gush:-CA Institute Bats for Special Audit

Obligation for the Month of May 2017

Obligation for the Month of May 2017 Event DateActApplicable FormObligation6-May-2017Service TaxChallan No.GAR-7E-Payment of Service Tax for April by Cos7-May-2017Income TaxForm No.27C (TCS)Submission of Forms received in Apr  to IT Commissioner7-May-2017Income TaxChallan No.ITNS-281Payment of TDS/TCS deducted/collected in Apr10-May-2017ExciseER-1Return for Non SSI assessees for Apr10-May-2017ExciseER-2Return for EOUs for Apr10-May-2017ExciseER-6Return by units paying duty >  1 crore (CENVAT + PLA) for Apr12-May-2017D-VATBE - 2Advance information for 2nd fortnight of May of functions with booking cost > Rs 1 lakh in Banquet Halls,hotels etc. in Delhi15-May-2017D-VATDVAT-20Deposit of DVAT TDS for  Apr15-May-2017Income TaxForm 27EQTCS Returns by ALL Collectors15-May-2017Providend FundElectronic Challan cum Return (ECR)E-Payment of PF for Apr15-May-2017D-VATDVAT-48 Return of DVAT TDS for quarter ending March21-May-2017ESIESI ChallanPayment of ESI of Apr21-May-2017M-VATMVAT ChallanPa…

RBI minutes show MPC members flagged upside risks to inflation

RBI minutes show MPC members flagged upside risks to inflation Concerns about economic growth and easing inflation prompted five of the six monetary policy committee (MPC) members to call for a cut in the repo rate, but most warned that prices could start accelerating, show the minutes of the panel’s last meeting, released on Wednesday. The comments reflected a tone of caution and flagged upside risks to inflation from farm loan waivers, rise in food prices, especially vegetables, price revisions withheld ahead of the goods and services tax, implementation of house rent allowance under the 7th pay commission and fading of favourable base effect, among others. On 2 August, the panel chose to cut the repurchase rate—the rate at which the central bank infuses liquidity in the banking system—by 25 basis points to 6%. One basis point is one-hundredth of a percentage point. Pami Dua, professor at the Delhi School of Economics, wrote that her analysis showed “a fading economic growth outlook, as …