GST – EVASION OF TAX

In a recent survey, it is found that the taxpayers have bypassed each and every strict tax vigilance until now as the taxpayers and businessman have been implementing their own ways to evade the taxes. The tax evasion experiments are been tried with the latest GST regime indicating the facts of protests against the provisions and clauses of GST which mandates matching of sales and purchase invoices and e-way bill to track the goods supplied.

As from the evident examples where the garments having an upper price tag of INR 1000 being taxed at 12 percent and lower than it taxed at 5 percent has made a lot of eruption in the industry making the garment prices slightly lower than before to evade the taxes and compliances both.

Also, some businessman had tried different ways of supplying their goods to evade the taxes through partial means. As the goods sent by trucks may have chances of getting checked every time at the check post, the businessman tried other means of transport like railways which have no means of checking of goods.

A tax consultant has confirmed that many of the businessmen of Gujarat and Surat have used the same bill thrice while transporting their goods to other parts of the nations via the means of trucks. he added that “I don’t know why it’s three times but it is an industry norm.” The industry also uses kuccha and pakka bill to differentiate the goods and taxation affair while destroying the pakka bill once the goods have been transported.

It is also in the reports that the taxpayers, especially from Delhi, have been taking illegal benefits of input tax credits in which it is stated that, “bill to one and shift to another” kind of strategy is followed. The tax evaders try to fake the invoices generated in the favour of the entities who are interested in input tax credit with those who don’t want the ITC.