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Tax Dept raises GST revenue target to Rs 1.15 lakh cr for Jan-Feb

Jan 17, 2020, 21:24 IST
PTI
New Delhi, Jan 17 () The tax department on Friday raised GST collection target to Rs 1.15 lakh crore over the next two months and Rs 1.25 lakh crore for March month by checking fraudulent input tax credit claims.

The decision in this regard was taken in a high-level meeting chaired by Revenue Secretary Ajay Bhushan Pandey held on Friday, sources said.

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Last month, the department had raised its GST tax collection target to Rs 1.1 lakh crore per month with Rs 1.25 lakh crore for a single month for the remaining period of this financial year while the direct tax target was to remain at Rs 13.35 lakh crore sans the corporate tax relief of Rs 1.45 lakh crore.

The meeting was attended by all the very senior officials of CBIC and CBDT to devise an action plan and make the field functions more efficient to achieve the collection aims without any overreach, sources said.

According to sources, it is learnt that GST authorities would look into the mismatch of supply and purchase invoices, data analytics of mismatch in GSTR-1, GSTR-2A and GSTR-3B, failure of filing returns, over invoicing, recuperation of fake or excess refunds availed beyond the permissible limits, patching the tax leakages, action on checking fake or huge ITC claims, data analytic review of all the refund under inverted duty structure, etc.

Sources further said that SMSs and emails will be sent to all such fraudulent or excess ITC claimants, targeted defaulters, non-filers and those who provide mismatched information in their returns or over invoice or who have been identified through data analytics for tax evasion by duping the system through rogue modus operandi.

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Taxpayers who have taken ITC wrongfully can voluntarily repay amount equal to inadmissible credit before verification and punitive action is taken against them, they said.

The electronic communications to such identified targeted taxpayers and fraudulent refund seekers and over-invoice users would be followed by visits from the GST field formations to make them abide by the law and pay due taxes in time, sources said, adding, the field formations would be required to report on daily basis.

Weekly high level review of revenue augmentation measures and efforts made or actions taken against these targeted gamers, fraudulent ITC seekers and identified default taxpayers would be done by the Revenue Secretary.

Around 40,000 companies have been red-flagged for excess or fraudulent ITC availment and other tax related wrongful issues through data analytics, out of 1.2 crore GST registrants and focus would be on these identified taxpayers, sources said.

Field formations have been directed to conclude ITC recuperation without any overreach but in a stipulated timeframe, sources added.

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Sources emphasised that the permissible ITC limits have been further reduced to 110 per cent of the declaration made by the suppliers from January 1, 2020 and the taxpayers filing their return for the month of December 2019 should take this into consideration while filing their FORM GSTR-3B, to avoid any punitive action by the authorities. DP MR

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