As per the direction of GST authorities now field units have to identify prime taxpayers, find the defaulters and promote them to give more tax. They have been directed to connect the top 200 defaulters (return) for the month of February concerned to central jurisdiction and ask them to file tax returns.
The directive was issued earlier this week with the aim of increasing revenue to achieve the annual target for the financial year 2021. An official notice issued by the Delhi state authority earlier this week said that “As we approach the end of the financial year, all-out efforts need to be made by ward authorities and zonal incharges,”
Industry experts said that as March is the last month of this FY, the jurisdiction’s revenue officials are trying to collect more and more revenue to achieve their targets.
Harpreet Singh, responded that “Visits to premises, calls, email communications etc. are being undertaken by officers to ascertain shortfall in tax deposits. Also, regular non-filings, reconciliation differences, pending demands are being perused to ensure maximum collections”.
Experts told that the released directive meant there would be a flurry of notices from the taxation department in the next few remaining weeks.
Rajat Mohan, senior partner, AMRG Associates said that “Financial year is drawing close and tax officers are expected to initiate recovery proceedings and enforcement action against taxpayers allegedly flouting tax norms with the aim to pep up tax collections.”
All the officers also received an order to prepare a list of the top 300 taxpayers from their wards having a cash payment concerning state GST for Financial Year 2020, the same will be compared with the SGST deposited in cash in between November to February months.
Tax Authority in this matter said that “Basis on this list, top defaulters taxpayers who have shown a decline of 25% need to be contacted personally by the AC/ GSTO and reasons for their decline to be ascertained. They may be motivated to increase their tax contribution.”
If the demand is found pending and the taxpayer has not raised any objection then in such case officers have been directed to perform the recovery proceedings by distributing the demand letter after performing the attachment action. Sources also informed that tax authorities also issued a similar directive for value-added tax recovery.
If a case involves fake invoices or cases referred from any other state, action needs to be taken to deposit tax or cash in this month itself. The authority informed “The cases forwarded by the enforcement branch need to be assessed by March 21.”
Authorities also said that “To penalise the habitual late filers, Interest on cash liability of tax should be levied on significant cases according to the provisions of the GST Act”. Taxpayers who have opted to file quarterly returns, but should be reminded to pay monthly tax if they are making monthly payments under the scheme.
In the official memorandum issued for the field units, the authority also stated that all return defaulters till February need to be asked to furnish their GST returns, and if required assessment notices can be also issued. However, it also mentioned that if the tax returns for January this year means 2021 have not been filed, then the final assessment notice will have to be prepared by 15th March.
It also informed the officials that they can release notices concerning discrepancies in GST returns between monthly basis and quarterly basis and settlement along with audit statements submitted by taxpayers toward Financial Year 2018, FY19, FY20 and even Financial year 2021.
It also directs officers that demand notices also can be issued where the taxpayer has not responded or his/her response found unsatisfactory.
The Authority said that the “Similar approach is required to be adopted in cases of mismatch between input tax credit availed in GSTR 3B and ITC auto-drafted in GSTR 2B“.
