The four-fold increase in detection of evasion cases and recoveries in the first six months of the current financial year could have played a vital role in the Goods and Services Tax (GST) collections, which crossed the mark of Rs 1 lakh crore in October, the second time since its launch. The government had first reported over Rs 1 lakh crore GST collection in May this year. During the April-September, the government detected GST evasion of nearly Rs 3,560 crore as compared with Rs 878 crore in the period of July 2017 to March 2018, the first nine months of the implementation of the indirect tax regime, which was rolled out GST from July 1, 2017, The Indian Express reported.
For the month of October, the GST revenue collections were reported at Rs 1,00,710 crore and Rs 6,78,680 crore in the first seven months of 2018-19. It may be noted that the government had set a monthly target of Rs 1 lakh crore for GST, thus taking the annual target to Rs 12 lakh crore.
The Directorate General of GST Intelligence (DGGSTI) recovered Rs 2,300 crore in 360 cases, which is about 65% of the total detection of Rs 3,560 crore GST evasion in 428 cases in the first six months period of the ongoing financial year, as compared with just 27% recovery of Rs 235 crore from detection of Rs 878 crore in 176 cases in July 2017-March 2018, the newspaper said citing the government data.
For central excise, a tax evasion of Rs 2,740 crore in 335 cases was detected during the first six months as compared with Rs 4,118 crore in 434 cases in the corresponding period last year. Out of the detected amount of Rs 2,740 crore, Rs 332 crore has been realised in 258 cases compared with the realisation of Rs 172 crore in 288 cases in the same period last year.
For the April-September period, for service tax, evasion worth Rs 21,167 crore was detected and out of this Rs, 2,975 crore has already been realised. In the same period last year, the government had detected Rs 6,296 crore of evasion, out of which Rs 1,389 crore was realised.
According to an official, the detection of GST evasion cases has become easier with the help of technology, which is being used now to conduct an analysis of data sourced via GST returns and e-way bills. Also, the focus on anti-evasion measures like the implementation of TDS/TCS as well as the use of new technology is expected to continue further, so as to meet the zone-specific targets, the official added.
During the 30 GST council meeting, which was held on September 28, revenue concerns were raised by several states with six states/union territories namely – Mizoram, Manipur, Arunachal Pradesh, Nagaland, Sikkim and Andhra Pradesh — had registered a revenue surplus under the indirect tax regime, while rest 25 states were facing a revenue shortfall ranging from 3% to 42%.
Source- Financial Express.