In a recent scenario to combat the illegal tax evasion of GST, the Andhra Pradesh tax officer fined a trader for not paying appropriate GST accountable. It was learned that the tax officer fined INR 20,000 as a penalty on the trader for an omission of INR 15 GST in the bill.
It was a strict action taken against such a miniscule amount as the quantum of penalty is not yet defined in such cases of GST evasion. It was also released from the Industry experts that going behind the traders in this manner will only bring opposite results.
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The show cause notice which was served by the officer stated that “It’s clearly established that you will-fully violated the provisions (of GST law) a punishable offence.” Now the government has also indulged in this agenda to tackle the situation and has deployed 200 senior IAS, IPS and IRS officers in several cities and small towns to find out the grey trading communities which are violating norms of GST.
And from this recent incident, it is evident that the officers are now active and has begun taking actions against those faulty traders and businesses. The tax notice which was given to the traders included that, “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.”
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On this issue, MS Mani, partner at Deloitte India stated that, “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, 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.”
