With the government’s revenue collection trailing behind the Budget targets for financial year 2019-20, the Revenue Department has set the Goods and Services Tax (GST) target for the remaining three months at Rs 3.55 lakh crore (Rs 1.15 lakh crore for January-February and Rs 1.25 lakh crore for March).
To achieve this target, the government will have to clock a monthly average of Rs 1,18,333 in the remaining period of this fiscal, which is 17.2 per cent higher than the monthly average of Rs 1,00,928 crore recorded during April-December, the first nine months of the financial year.
Red flagging cases of around 40,000 companies for excess or fraudulent input tax credit availment, the Revenue Department has asked its field formations to initiate actions against willful tax evaders or those using fake invoices or fake e-way bills, finance ministry sources said.
“Around 40,000 companies have been red-flagged for excess or fraudulent ITC availment and other tax related wrongful issues through data analytics, out of 1.2 crore GST registrants and focus would be on these identified taxpayers. Field formations have been directed to conclude ITC recuperation without any overreach but in a stipulated timeframe. Field formations have been exhorted to put forward special efforts and to initiate actions against wilful tax evaders or those who are using fake invoices or inflated or fake e-way bills,” a source said.
Meanwhile, Directorate General of GST Intelligence has also written to the field formations to compile a list of GST assessees who have availed “fake credit”, the amount of credit availed by them.
Officers have been asked to block the credit of such GST taxpayers. To operationalise the scheme, the DGGI has asked each Principal Chief Commissioner/Chief Commissioner in its zone to appoint a nodal officer for this and complete the blocking of credit by this week.
The amount of wrongful input tax credit availment due to discrepancies and mismatches is estimated to be around Rs 10,000 crore over the last few months, a GST official said, adding that now the focus will be on such taxpayers who have wrongfully claimed credit under the indirect tax regime.
GST authorities have been specifically asked to look into the mismatch of supply and purchase invoices, data analytics of mismatch in GSTR-1, GSTR-2A and GSTR-3B, failure of filing returns, over invoicing, recuperation of fake or excess refunds availed beyond the permissible limits, checking fake or huge ITC claims, data analytics review of all the refunds under inverted duty structure.
Sources said that SMS and emails will be sent to all such taxpayers who have claimed fraudulent or excess ITC and defaulters, non-filers and those who provide wrong information in their returns will be targeted.
Those who have been identified through data analytics for tax evasion by “duping the system through rogue modus operandi” will be under the scanner, they said.
Taxpayers who have taken ITC wrongfully can voluntarily repay amount equal to inadmissible credit before verification.
The electronic communications to such identified taxpayers would be followed by visits from the GST field formations, they said.
Weekly review of revenue augmentation measures and actions taken against the wrongful/fraudulent claimants would be done by the Revenue Secretary.
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