For surging the revenue generated via GST, an anti-evasion function is been initiated by the Delhi government’s tax mainstay, via surveys, inspection, and search and seizure.
According to a Delhi government official, special teams have been deployed on state borders to check illegal vehicle entrances and confiscate them if they are found to be in violation of GST laws, while other analytical techniques are being used to combat evasion and enhance tax collection.
The GST and value-added tax (VAT) account for about 70% of the overall revenue received by the Delhi government via different cess and charges. The government collected Rs 30,284 crore through them through February 28 of the fiscal year 2022-23, which was roughly 24% more than the collection during the same time in 2021-22. With the GST compensation scheme set to expire in June 2022 and the Delhi government estimating an annual income loss of about Rs 12,000 crore, officials said efforts were being made to improve GST and VAT collection.
The government estimates that these two taxes will generate Rs 37,200 crore, or 69% of total taxable income of Rs 53,565 crore, in the fiscal year 2023-24. Authorities stated that it would only be possible if steps were taken to help taxpayers and raise income. In addition to widely utilizing the GST analytics and intelligence network, business intelligence and fraud analytics, and GST portal to efficiently analyze and verify evasions, the department has begun monthly performance monitoring with 18 key performance indicators in each taxation ward. A close eye is kept on the state boundaries to avoid illegal vehicle entrance and GST breaches.
In order to track the evasion of tax by the companies a bogus firm cell would have been made via building the fake or non-existent firms. The cell functions on intelligence inputs, references, and physical verification reports.
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According to a senior government official, the trade and taxation department is organizing a number of outreach programs to increase the revenue base by bringing eligible individuals into the tax net. We have also decided to establish a specialized tax policy and revenue augmentation section to assist in increasing revenue collection by identifying possibilities and discovering revenue leakages. The unit will also assist the department in policy development.
