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Around 30% taxpayers (3.26 lakh) in Tamil Nadu did not pay a single rupee of GST in FY 2021-22. And 1.94 lakh taxpayers paid less than Rs.1,000 throughout the year: GST Study by Department

Similar study should be done in all states.

These findings have been made through a recent study done by the Department of the tax remittances. There are about 11 lakh registered dealers in the State, of whom 6.72 lakh come under the State jurisdiction and the rest under the Centre.

After the study, the Department sent communication to 5.2 lakh dealers, requesting them to check their accounts. 

Asked whether the nil or negligible payment of tax can be considered tax evasion, a senior official of the Commercial Taxes Department said, “Right now, such a conclusion cannot be arrived at. For that, we will have to peruse accounts of the dealers thoroughly.”

Though the previous financial year’s revenue collections of the GST, in terms of year-on-year growth, saw a positive rate of 15.83%, the highest in a full financial year since the GST was introduced in July 2017, the authorities were plugging the loopholes in the tax collection mechanism. Hence, the study was carried out.  The GST revenue collections comprise three components — State GST (SGST), Integrated GST (IGST) settlement and ad-hoc IGST settlement.  Compensation has not been taken into account for calculating the GST revenue collections. 

Besides, a perusal of the monthly GST collection data, as released by the Centre in the last six months, reveals that Tamil Nadu had registered a tepid growth over the corresponding months in the previous year, whereas Maharashtra and Karnataka, despite having a higher base, had performed better than Tamil Nadu.

Observing that not every one of the 5.2 lakh dealers can claim to have carried out business within the threshold, the official says the payment of tax has become a necessity as buyers, especially those belonging to micro, small and medium enterprises, want to avail themselves of input tax credit.  

Source - Thehindu.com


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Author:

TaxReply


Jun 6, 2022

Comments


All the taxpayers are called for audit by the Auditor and verification of GST as books of accounts and Return forms, physical stock and books. The dealers not gernerate invoices Or sales bills every sale point. there is much differences between books and physical stock.
By: Sreenu Bolisetty | Dt: Jun 7, 2022


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