The government reshuffled the Indian taxation system and implemented the Goods and Services Tax Act. The abrupt implementation of the regime took most of the Indian businesses by surprise. And soon after the roll-out of the indirect taxation system, the startled taxpayers started facing the compliance issues. Baffled by the cluttered taxation processes, the businesses started adopting fraudulent measures to evade GST. The Central Board of Excise and Customs has tracked down most of the Indian businesses involved in the tax evasion practices.

You’d be surprised to know the fact that the CBEC has recently unearthed the evasion of more than INR 400 crores. This was the result of investigating only 100 business locations around the entire nation.Now, imagine the evaded amount that will be discovered if all the Indian businesses will be examined thoroughly.Although one can’t make a rigid opinion about the reason behind the evasion measures. Due to the complexity of the regime, the condition of the small businesses in India worsened. Striving for the survival of the business, many taxpayers finally decided to bluff the government.

The latest on GST bill reveals that the government ensured to:

  1. Track down the non-filers under the Goods and Services Tax Act.
  2. Check the taxation records of the businesses that have not been paying the central excise and service tax for long.
  3. Make sure that the major contributors to the revenue collections fall in line.

The evasion due to the technological glitches

Since the Goods and Services Tax Act is entirely digital in nature, it made the businesses having no access to the technology suffer. There are thousands of businesses in India that still follow old-school techniques in order to do the taxation. Although, the government spared the genuine cases of non-filers. Many of the businesses, during the raid, claimed that they couldn’t file the returns due to sluggish GSTN. Cross-checking the facts provided by these businesses, the government advised them to re-file the returns and use GST credit calculator.

If you are amongst the businesses that haven’t been able to file the returns due to some technological errors, then you must re-file it on time. Keeping the taxation record clean should be each taxpayer’s the topmost priority.Even a single stain of deceit on the taxpaying status could hinder your business as well as trouble you from taking any type of the governmental assistance like loans etc.

Directorate General of Goods and Services Tax Intelligence

The main function of the Directorate General of Goods and Services Tax Intelligence is to collect and disseminate information related to the evasion practices all around India. Its officers are assigned the powers to take strict actions against the ones found guilty in the cases like the non-payment of central excise and service charge. The government formulated this body under the Central Board of Excise and Customs. The officials of DGGSTI could also discharge the powers and responsibilities of the CBEC officers and can further take over any evasion-related case if necessary.

As per the latest on GST bill, the DGGSTI officials discovered that the iron and steel businesses are highly involved in the evasion measures. Have you ever decided to invest in the real estate and found it misleading? That happens when the business tries to avoid passing on the benefits of ITC (Input Tax Credit) to the consumers. The same fault has been tracked by DGGSTI officials as the companies have been found involved in the profiteering measures as well.

A strong warning for the GST-evaders

The government has decided not to hold back in putting an end to the evasion practices. The evasion results in the lower collection of revenues and ultimately it gives a rise in the prices of daily commodities. In this way, those businesses involved in the misleading taxation practices are wrongly relieved and the entire burden of the taxation suppresses the build of the small businesses. Hence, the government, after the recent investigations of more than 100 premises, has warned the businesses that same actions will be taken in the near future. The only option to prevent your business from such belittling act is to follow the taxation rules timely and with full honesty.

Conclusion

If more businesses will get involved in the practices to evade the tax, the consequent decline in the revenue collections will weaken the economy. Although, it has become necessary that the government takes serious investigatory steps in order to draw the faulty businesses out. The Goods and Services Tax Act has been rolled-out almost nine months ago and still faces the cumbersome issues. The only straightway out of this situation could be the government educating and spreading the GST awareness amongst the businesses all over India.