Indore: SGST department kick-starts drive to check corrupt trade practices

The state goods and service tax (SGST) department has launched a check drive to prevent corrupt trade practices. Under the drive, the officials will check three things at business establishments. They include underpaid tax, more draw of input tax credit and mismatch between stock and supply. The department will take penal action against the defaulters.

The exercise, launched after one year of implementation of GST, is aimed to trace tax evasion and identify businessmen who are trying to mislead the system. A senior department official said some trades have deposited the less tax while manipulating mismatch in sale and purchase data. The officials are tracing mismatches in four different ways.

One, where traders show more sale in GSTR-1 but show less sale, which is taxable, in GSTR-3B. Second kind is where traders show less purchase from registered traders but get more input tax credit (ITC). In third kind of mismatch, tax payers sell goods outside the state or import goods from other states but do not file GSTR-3B. Fourthly, where taxpayers import goods from outside India and pay IGST (Integrated GST) on imports.

But compared to the deposited IGST, they draw more ITC. Acting against defaulters, the department has begun to cancel registration certificate of those traders who have not submitted quarterly returns. Apart from this, the department is also finding out other kinds of information through data analysis.

“Traders who are following unfair trade practices are on radar of SGST department. This has been done after analysing data.”

-Sudip Gupta, joint commissioner, MP SGST department

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