At a national conference of indirect tax authorities in New Delhi, finance ministry officials emphasized the necessity for tax officers to balance enforcement with fostering ease of business. Revenue Secretary Sanjay Malhotra, addressing the gathering on Tuesday, underscored the critical need to strike “a fine balance between enforcement actions and ease of doing business.” He urged tax officers, both central and state, to concentrate on identifying and acting against fake registrations during a newly launched special drive. This initiative also aims to track down and punish the masterminds and beneficiaries behind fake tax credits. Malhotra noted that recent GST return changes would systematically curb tax evasion.
Sanjay Agarwal, the chairman of the Central Board of Indirect Taxes and Customs (CBIC), highlighted the importance of tax enforcement agencies staying ahead of evaders to maintain the integrity of the GST system. Agarwal advised tax officers to prioritize substantial evasion cases over interpretative issues and standard industry practices.
The government has initiated a two-month special drive from 16 August to eliminate fake GST registrations used for tax evasion. “Nearly 59,000 potential fake firms identified through specific risk parameters are set to undergo verification and further inquiry,” the statement revealed. According to the Director General of GST Intelligence, tax evasion amounting to Rs. 1.2 trillion through wrongful tax credits has been detected since 2020.
The extensive use of technology and increased disclosure requirements have significantly boosted GST revenue collections. The CBIC has already instructed field officers that legal provisions might be interpreted differently by tax officials and taxpayers. In such instances, senior field officers are advised to consult higher authorities before issuing show cause notices, according to a Mint report on Tuesday.
This diligent approach aims to enhance compliance while fostering a business-friendly environment, an imperative for sustaining economic growth.
Original Story https://www.livemint.com/news/tax-evasion-compliance-gst-cbic-sanjay-agarwal-sanjay-malhotra-gst-evasion-11724168632612.html
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