Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
12,086.70114.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Taxmen slap big penalty to check evasion of GST

In a show cause notice, an Andhra tax officer has asked the said trader to pay Rs 20,000 in fines after he omitted Rs 15 GST in a bill.

, ET Bureau|
Updated: Sep 30, 2017, 10.34 AM IST
0Comments
The quantum of fine is not defined under the GST law and is at the discretion of tax officers.
The quantum of fine is not defined under the GST law and is at the discretion of tax officers.
NEW DELHI: A fine of 100,000 per cent is something few people would have heard of, or even thought about. A trader in Andhra Pradesh was recently asked to cough up more than that for not paying the goods and service tax.

In a show cause notice, an Andhra Pradesh tax officer has asked the said trader to pay Rs 20,000 in fines after he omitted Rs 15 GST in a bill. “It’s clearly established that you wilfully violated the provisions (of GST law)…a punishable offence,” the notice said.

This comes about two months after the government had asked almost 200 government officials across the country to go on a shopping spree and identify traders and shopkeepers who were flouting GST norms.

ET was the first to report on July 8 that the government has deputed 200 senior IAS, IPS and IRS officers across cities and small towns as sleuths to identify businessmen, wholesalers and retailers violating the norms of GST.



It seems these officers have now started reporting such cases to the relevant tax officials and the latter has begun to crack down on such traders.

“During the visit to your business premises you have sold one ready-made shirt worth Rs 300 to a customer and collected the full amount, but failed to issue tax invoice, and thereby, evaded GST,” the tax notice issued to the trader on September 5 read. ET reviewed a copy of the notice.

The quantum of fine is not defined under the GST law and is at the discretion of tax officers.

However, some industry trackers said going after traders in such a manner may keep many small traders and businessmen away from GST.

“Ideally no penalty should be levied for minor transgressions as the law is of recent vintage and there could be inadvertent mistakes committed initially by taxpayers,” said MS Mani, partner at Deloitte India. “It would be better to encourage taxpayers who have been out of the indirect tax fold to come into the GST framework without any fear of penal action,” he said.

“The penal provisions can be invoked once taxpayers are familiar with its provisions and current issues being faced by taxpayers are settled,” said Mani.

Also Read

Wrong time to raise GST rates, cautions former GST Council member

States seek pruning of GST exemptions

States demand pending GST compensation

GST structure to be reviewed on revenue concerns

Eatery levies both GST & service charge, fined

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service