The Delhi government is taking steps to plug revenue leakages in the Goods and Services Tax (GST) system to increase its revenue collection. The move comes as the state has witnessed a significant shortfall in its GST collection over the last few years.
According to a recent report, the Delhi government has identified several areas where GST evasion is taking place. These include cases of fake invoices, under-reporting of turnover, and non-payment of tax.
To tackle these issues, the Delhi government has implemented several anti-evasion measures. These include the use of data analytics to identify businesses that are not paying their taxes, the creation of a GST intelligence unit to track suspicious transactions, and the deployment of special teams to conduct surprise inspections.
Additionally, the Delhi government has launched an initiative to encourage taxpayers to voluntarily disclose any unpaid taxes or incorrect filings. This amnesty scheme offers a waiver of interest and penalties for those who come forward and rectify their mistakes.
The government has also increased the penalties for GST evasion. The penalty for not issuing invoices or issuing fake invoices has been raised to 100% of the tax amount, while the penalty for under-reporting of turnover has been increased to 50% of the tax amount.
These measures have already started showing results. The Delhi government has reported a significant increase in its GST collections over the last few months. The collections have surpassed the target set by the government, indicating that the anti-evasion measures are having a positive impact.
The government is also working on improving its overall tax administration system. It is implementing reforms to make the tax filing process simpler and more transparent for taxpayers. The government is also investing in technology to improve its data analytics capabilities and enhance its ability to track tax evasion.
In conclusion, the Delhi government’s focus on plugging revenue leakages in the GST system is a positive step towards boosting its revenue collection. The implementation of anti-evasion measures and reforms in the tax administration system is expected to improve compliance and reduce tax evasion. This, in turn, will help the government to increase its revenue collection and provide better services to its citizens.
For any further doubt on matters related to GST, feel free to contact ASC Group.
Source: Times of India
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