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Bunging tax evasion can boost tax revenue in J&K

Zafar Bhat. Dated: 12/15/2018 11:15:12 AM

Zafar Bhat
Jammu, Dec 14
For the economic welfare of J&K, it is requisite to prevent large-scale tax evasion noticed under GST by launching drive for timely inspecting business and checking e-way bills. However, tax evasion is an illegal action in which a person or entity deliberately avoids paying a true tax liability. Those caught evading taxes are generally subject to criminal charges and substantial penalties.
Whereas, as per government data report the share of J&K GST to total GST of all the states is 1.2%, the compliance level in the State is only 0.27 %.
Notably, the tax evasion cannot be cure until citizens of J&K not be made aware that while they are paying legitimate GST, the sameshould reach the Government accounts. Only the continuous efforts of the Department against defaulters would result in a significant increase in the monthly IGST settlement of the state. Toll tax is levied consciously to promote industrial development in the state as a policy tool.
Importantly, the investigation of records and checking of e-way bills should continue till such time the trade and businesses start complying the GST law, file returns in time, generate proper invoices and deposit the tax to the department timely.
Moreover, appeal should be made general public to insist for proper bill against any purchases made by them. Not taking bills by the public from any supplier is causing tax evasion and loss of revenue to the Government.