With the economic activity picking up after relaxation of Covid-19 restrictions, the Chandigarh goods and services tax (GST) department has also restarted drive against tax law violators and has issued 100 notices in suspected cases of tax evasion amounting to more than ₹55 crore.
“The department has shortlisted 100 taxpayers on the basis of discrepancies found between GSTR-3B and GSTR-1, involving more than ₹55 crore. Taxpayers have been issued notices,” said RK Chaudhary, assistant excise and taxation commissioner.
GSTR-3B is a monthly summary return filed by a taxpayer by the 20th of next month. GSTR-1 is a monthly or quarterly return filed by taxpayers to disclose details of their outward supplies for the month, along with their tax liability. Reconciliation between the two ensures that no invoice is omitted or recorded more than once and a taxpayer arrives at an accurate amount of output tax payable.
GST dept steps up checking of e-way bills
The Chandigarh GST department in order to plug evasion of tax has also stepped up its roadside checking and inspection of e-way bills. The department has imposed and recovered a penalty of ₹34 lakh in October, said Chaudhary.
The GSTIN (good and service tax identification number) of 542 taxpayers who were generating e-way bills, but did not file their GSTR-3B returns for December 2019 and January 2020 have been blocked by a computerised system. The blocking of e-way bills has restarted from October 15 and applicable on those taxpayers whose turnover is more than ₹5 crore.
The department has calculated an interest to the tune of ₹13.24 crore on late payment of voluntary taxes for years 2017-18, 2018-19 and 2019-20 by taxpayers. This interest amount has been calculated on the net tax liability after allowing input tax credit and the department has initiated recovery proceedings by issuing statutory notices to the taxpayers for deposit of interest on late payment of voluntary taxes.
The GST department has accomplished 100% returns compliance in the years 2017-18, 2018-19, 99.97% in 2019-20 and 94.65% in the current financial year 2020-2021(up to September 30), which is highest in India, Chaudhary said.