Over 400 traders, hotels, institutions, transporters, government departments, and companies are on the radar of the Excise and Taxation Department of the Chandigarh Administration for not paying tax or filing the mandatory GST returns on time. Sources said the department had prepared a list of those who failed to pay the tax in the stipulated time. Among the defaulters were some prominent personalities, including a senior lawyer. Meanwhile, the department has, for the first time, blocked the e-way bill generation system of around 460 traders who failed to pay tax in the past two months. The action has been taken on the direction of the GST Council.
The sources said in the absence of e-way bill generation, they would not be able to transport their goods from one place to another. In future too, defaulter firms will face such an action. e-way bill is an electronically generated document mandatory to be carried for movement of goods across India and within the city. It is necessary for the movement of goods worth more than Rs 50,000 with some exceptions. A unique e-way bill number (EBN) is generated for each such consignment to be transported. The validity of this EBN depends on the distance of transportation of goods.
Moving goods without the cover of an invoice and e-way bill constitutes an offence and attracts a penalty of Rs 10,000 or the tax sought to be evaded. The vehicle that is found transporting goods without an e-way bill can be impounded and is to be released only on the payment of appropriate tax and penalty as specified by the officer. Whenever a buyer purchases any goods exceeding a value of Rs 50,000, he is required to procure an e-way bill from the vendor. Ajay Jagga, a GST expert, has hailed the decision of the GST Council and stated that it would help in stopping tax evasion.