Economy

New Measures to be Implemented to Prevent GST Evasion

As per the senior government officers, the government will soon be launching several measures to combat GST evasion. Field formations have been instructed by the Central Board of Indirect Tax and Customs (CBIC) to proceed with GST registration cancellation concerning non-compliant taxpayers. Field formations have been asked to submit a status report daily until 25 November. 

According to the officials, measures are being undertaken since the centre is worried about the dipping revenue collection and the decreased percentage of tax return filers. Field formations will be issuing mass scale notices soon to taxpayers who haven’t filed their GSTR-3B. Non-filers will be identified based on whether they have submitted their returns or not for six or more tax return periods. Notices will be sent to non-compliant taxpayers for cancellation under section 29 of the CGST Act.

One of the officials mentioned that on 25 November, the Revenue Secretary would review the tax position along with the other commissioners and chief commissioners of the Central as well as the state GST in a conference, which will be held in New Delhi. Also, there is anticipation about more tax notices being dispatched by the tax department.

Also Read: GST Revenue Collection Continues to Drop by Over Rs 2,500 crore

A North Block tax official mentioned that the government might also consider issuing notices in bulk to taxpayers who haven’t filed a single return till date. The government will establish several Seva kendras throughout India. With the help of the outsourced Seva kendras, taxpayers will be able to file returns as well as make payments.

The centre is also planning to postpone the mandatory e-way bill linking with Radio Frequency Identification (RFID) on National Highways starting 1 December. This is because the Finance Ministry wants to see how successful the nationwide RFID launch is going to be at toll plazas before determining a new date.

Also, the government will delay the measure of not allowing the e-way bill generation for a taxpayer who has not filed his/her GST returns for two consecutive months. This measure was supposed to go live from 21 November.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

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