Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Jul 26: Although the central government had hoped to plug all loopholes in tax collection and ensure that tax payment is made foolproof, the commercial taxes department here has detected that about 3,000 persons grouped as high value tax payers have not been remitting Goods and Services Tax (GST) promptly.

The department, which took note of this evasion, conducted an operation through which it collected unpaid taxes along with fine of over Rs 100 crore.

The officials of the department reveal that out of 40,000 businessmen whose transactions are on the higher side, about 3,000 have not been remitting taxes promptly. The commercial tax department officials have launched an operation to serve notices to them and collect the taxes due from them. The department is also conducting sector-wise verification of tax paid, 'e-way receipts' and matching of returns in order to detect all the tax evaders and take stringent measures against them.

In Karnataka, over seven lac persons have registered themselves under GST. The taxes collected from them happen to be one of the major revenue sources for the government.

Karnataka has about 40,000 high value GST payers, who account for over 80 percent of total GST revenue. But among them, nearly 3,000 are found to be not regularly remitting taxes due by them. During the last three months, the department officials have found evasion of about Rs 150 crore in the form of taxes by these people. The department says that several businessmen and traders have been prompt in submitting form 3B, but submission of form lR-1 has been highly irregular. While some provide details of goods acquired by them, they are not giving sales figures.

In several cases, the concerned collect GST from their customers but do not remit the same to the department. The department, which has all the figures with them, says it is possible for it to get different figures with the returns submitted and find out the defaulters and take action against them.