Rs 2,000 cr GST evasion unearthed in 2 months

Source: The Hitavada      Date: 28 Jun 2018 09:17:27



 

NEW DELHI,

Data analysis reveals that only 1 per cent of over 1.11 crore registered businesses pay 80 pc of taxes

 

THE GST investigation wing has detected tax evasion of over Rs 2,000 crore in two months, and data analysis reveals that only 1 per cent of over 1.11 crore registered businesses pay 80 per cent of the taxes, a senior official said on Wednesday.
CBIC member John Joseph said that alike small businesses who are making mistakes while filing GST returns, multinationals and big corporates too have slip-ups.
“If you look at the way tax revenues are paid, it gives an alarming picture. We have registration of more than 1 crore businesses.


“But if you look at where the tax is coming from, it is less than 1 lakh people paying 80 per cent of the tax, one does not know what is happening in the system, it is an important thing to study,” Joseph said at an Assocham event here.
Joseph, who is also the Director General of Goods and Services Tax Intelligence (DG GSTI), said that the analysis of composition dealers data shows that most of them have an annual turnover of Rs 5 lakh. “This shows that a lot of compliance is required.”


Under composition scheme, traders and manufacturers are allowed to pay taxes at a reduced rate of 1pc, while restaurant owners have to pay at 5 per cent rate. The scheme is open for manufacturers, restaurateurs and traders whose turnover does not exceed Rs 1.5 crore.