GST intelligence wing to check tax evasion by hand sanitizer manufacturers across India

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The goods and services tax (GST) intelligence wing will check tax evasions by hand sanitizer manufacturers across India, according to government sources. The Directorate General of Revenue Intelligence (DGGI) has issued a letter to principal chief commissioner/chief commissioner to check evasion of GST by manufacturers of alcohol-based hand sanitizers, government sources told CNBC-TV18.

DGGI sources said, “DGGI first did a few operations against many units and after finding major irregularities, DGGI then sensitized the CGST field formations. It is difficult to guess the total amount of evasion so far, but it is estimated to be substantial.” “Mis-classification of hand sanitizers produced under various established brands is also being looked into by various zonal units of DGGI”, according to the letter reviewed by CNBC-TV18.

They, requesting not to be named, said the letter was written on June 10. DGGI took note of a Central Economic Intelligence Bureau letter and opinion of the World Customs Organisation (WCO) to step up vigil, they say. The DGGI explains that due to misclassification of hand Sanitisers (alcohol-based), sugar mills and distilleries were filing tax under tariff heading 3004 (12 percent GST) instead of heading 3808 (18 percent GST).

According to the sources, the DGGI suspects a substantial GST evasion. A list of 62 manufacturers/suppliers have been prepared by the DGGI headquarters by identifying manufacturers with the help of online shopping platforms like Amazon, Flipkart, Snapdeal, Paytm, etc. is also being analyzed, they told CNBC-TV18.

Read More at: https://www.cnbctv18.com/finance/gst-intelligence-wing-to-check-tax-evasion-by-hand-sanitiser-manufacturers-across-india-6281891.htm