GST authorities ask field units to ramp up collections, identify defaulting taxpayers – The Economic Times

Clipped from: https://economictimes.indiatimes.com/news/economy/policy/gst-authorities-ask-field-units-to-ramp-up-collections-identify-defaulting-taxpayers/articleshow/81464901.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23Synopsis

Experts said that it being the last month of the fiscal year, revenue authorities across jurisdictions are working to garner as much revenue as possible to meet their targets.

Goods and service tax (GST) authorities have asked field units to identify top taxpayers, find the defaulters and push them to pay more tax.

Officers have been directed to call up the top 200 return defaulters for February belonging to the Central jurisdiction and ask them to file the tax returns.

The directive, aimed at increasing revenue mobilisation for achieving annual targets for FY21, was issued earlier this week.

“As we approach the end of the financial year, all-out efforts need to be made by ward authorities and zonal incharges,” an office memorandum issued by Delhi state authority earlier this week said. ET has seen a copy of the memorandum. Similar directives have been issued in other jurisdictions across the country.

Experts said that it being the last month of the fiscal year, revenue authorities across jurisdictions are working to garner as much revenue as possible to meet their targets.

“Visits to premises, calls, email communications etc. are being undertaken by officers to ascertain shortfall in tax deposits. Also, regular non-filings, reconciliation differences, pending demands are being perused to ensure maximum collections” said Harpreet Singh, partner, KPMG India.

Experts said the directive means a flurry of notices could be expected from tax authorities in the coming weeks.

“Financial year is drawing close and tax officers are expected to initiate recovery proceedings and enforcement action against taxpayers allegedly flouting tax norms with the aim to pep up tax collections,” said Rajat Mohan, senior partner at AMRG Associates.

Identifying defaulters
The authority has tasked officers to list out the top 300 taxpayers in their wards with cash payment of state GST for FY20, which will have to be compared with SGST deposited in cash over November to February.

“Basis on this list, top defaulters taxpayers who have shown a decline of 25% need to be contacted personally by the AC/ GSTO and reasons for their decline to be ascertained. They may be motivated to increased their tax contribution,” the authority said.

In cases where demand is pending and no objection has been raised by taxpayers, officers have been directed to complete recovery proceedings by issuing demand writs followed by attachment proceedings.

Industry sources said a similar directive has been issued for value-added tax recovery.

In cases involving intimation of fake invoicing or cases referred from other states, action should be taken for collecting tax or cash deposits in March itself, the authority directed. “The cases forwarded by enforcement branch need to be assessed by March 21,” it said.

Interest on cash liability of tax should be levied on major cases in accordance with GST Act provisions, the authority said, in order to push habitual late filers.

Taxpayers having opted for filing returns quarterly but making monthly payments under the scheme should be reminded to pay the monthly tax.

In the memo issued to field units, the authority has said that all return defaulters up to February should be directed to file their returns, and assessment notices should be issued wherever required. In cases where returns of January 2021 have not been filed, final assessment notices should be framed by March 15.

The authority has also directed officers to issue notices for discrepancies in GST returns in cases of mismatch between monthly and quarterly returns and reconciliation and audit statements filed by taxpayers for FY18, FY19, FY20 and FY21.

Demand notices should be issued in cases where no reply has been received from taxpayers or it has been unsatisfactory, it said.

“Similar approach is required to be adopted in cases of mismatch between input tax credit availed in GSTR 3B and ITC auto drafted in GSTR 2B,” the authority said.

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