The Central Goods and Services Tax (CGST) authorities have failed to take note of the repeated complaints regarding tax evasion by unscrupulous elements in the trade circles in procurement and the trade of cotton produced in Haryana. Whistle-blower farmer activist Ram Kanwar had got a whiff of a huge scam that had been taking place in the trading of cotton last year. After understanding the the modus operandi and taking into account fraud firms which have been operating to hoodwink the tax authorities, he wrote a letter to the CGST Commission in Rohtak on July 31, 2018. He also gave specific information and leads regarding the evasion of the GST on cotton by the unscrupulous ginners and traders.
Referring to the information by the state Assembly in March 2018, Kanwar mentioned that almost half of the arrival of cotton was traded without records and no market fee. In the letter, a copy of which is with The Tribune, he alleged that in spite of writing on wall, the tax department was deliberately looking the other way instead of taking action. In the follow-up letter to the principal director general, (CGST), Intelligence, Delhi, on October 8, 2018, gave a detailed description of the modus operandi of the illegal in the letter, urging the authorities to take action to bust the racket. But his efforts failed to wake up the authorities. The activist then followed it up with an RTI query, seeking reply about action on his plaint lodged to the department.
Replying to the RTI query, the commission stated on December 3, 2018, that the matter of the complaint had been examined and the same was referred to the DG, GST (Intelligence) Delhi for further action. Refusing to part with investigation details , the RTI stated that since the matter involved probe, the same was exempt from disclosure as per Section 8 (H) of the Act. Ram Kanwar, however, told The Tribune today that he was not satisfied with the response of the CGST which had, apparently, failed to take action. “I would take up the matter in the GST council and even the HC and the SC if the action was not initiated in the matter which has been causing extensive losses to the exchequer,” he said while demanding probe into the role of officials responsible in the scam.
Read more at: https://www.tribuneindia.com/news/haryana/gst-authorities-yet-to-take-note-of-cotton-scam-alleges-activist/709717.html