Bhubaneswar, Sept 22 (LocalWire) Use of fake bills to claim inputs tax credit remains high in mining belt of Odisha, two senior Goods and Services Tax officers said here on Sunday.
‘Such claims are mostly found in Rourkela and Keonjhar districts,’ Additional Commissioner of GST, central excise and custom, Bhubaneswar zone, Santosh Kumar Mohanty said.
Participating in a roundtable meet ‘Two years of GST- advantages and challenges’ organized by LocalWire, a hyper-local news platform, Mohanty said the evasion by unscrupulous traders has posed as a major challenge for officials.
“ The evasion by fake invoices is the perceived grey area in the state with regard to effective implementation of GST” he said.
‘We are upgrading the mechanism to nab such evaders. The central officials have already held discussion with the state government to curb this sort of evasion, he said.
The revenue intelligence wing of the department CGST has already intercepted six cases of fake invoice and Input Tax Credit claims. On complaints, the state police have arrested these unscrupulous traders,’ he said.
The Bhubaneswar zone is armed with the services of data analytics and risk management cell. The department will initiate stringent legal action to nab the culprits, he said.
The introduction of GST was a drastic step. Within a span of two years, it has been able to bring the unorganized business sector to the fold of organized sector to a certain extent.
Despite initial hiccups, GST is gradually picking up in a state like Odisha, he pointed out.
‘GST is an evolving process. It is a chain of interdependence between government agencies and the people. In the next five to six years, it will become entirely foolproof” he said.
The people need to develop compliant mindset for filing GST returns. The government apparently does not have the mechanism to keep tab on everybody,’ Mohanty said while speaking on the occasion.
‘GST registration is extremely beneficial for traders on the threshold. Abiding by GST rules, the traders can run their business transparently, boost their business besides augmenting the national economy,’ Anand Satpathy, special commissioner, Odisha GST, said during the meet.
Odisha is a consuming state, not a production region. The state is getting more revenue from Odisha GST than central GST. Therefore the Centre’s claim that consuming states getting more benefits from GST has proved to be a myth in Odisha’s context, said Satpathy.
There was the load of service tax and value-added tax in the pre-GST regime. GST has come out as a good initiative by mopping up revenue with uniformity across the country, said added Satpathy additional special commissioner OGST.
There is the need for more traders voluntarily conforming. If the small traders make compliance, the GST would transform the national economy, said Sitaram Beria, a chartered accountant taking part in the meet.
GST is a massive transformative initiative. In two years time, there have been changes to make it more transparent and system friendly, he added.
Implementation of GST was a herculean task. Despite initial hurdle, now it is moving towards the right direction, said chartered accountant Sidhartha Ranjan speaking on the occasion.
GST should be uniform in the supply chain, observed Ashwini Rath, entrepreneur, speaking during the meet.
GST procedures are being modified from time to time to make it system-friendly for traders, said Manoj Agarwalla, chartered accountant.
It is a consumption-based tax. Investment on infrastructure could pave that way for revenue generation. Unless there is more consumption, the revenue does not have scope to go up, opined Tarun Agarwalla, chartered accountant, while speaking on the occasion.
Despite periodic modifications, there are loopholes in the GST implementation. It needs to be plugged. Those businessmen running the things in an honest and transparent way are largely happy with GST, observed Prabodh Mishra industrialist.