Punjab is emerging as a state with one of the highest tax evasion rates in India, with authorities apprehending numerous criminals involved in bogus billing worth billions of dollars daily. Besides bogus billing, bill swapping is rampant, where traders sell their bills to other parties instead of giving them to customers.
FOPSIA's Fight Against Bogus Billing
The Federation of Punjab Small Industries Associations (FOPSIA) has been actively campaigning against bogus billing. The government has acknowledged that GST theft occurs on a large scale in the state. Recently, FOPSIA held a meeting with state GST department officials in Patiala, chaired by the Additional Taxation Commissioner.
Government's Response and Investigation
The president of FOPSIA revealed that department officials admitted the government was not receiving as much GST revenue as expected. In response, the state government has formed a high-level investigation committee to address the FOPSIA tax evasion report, with senior department officials as members. FOPSIA raised objections to two committee members, proposing their replacement to ensure a transparent inquiry.
Key Issues Identified
Following the meeting, it was identified that a lack of staff in the GST department and the Central Board Of Indirect Taxes and Customs (CBIC) providing numbers without verification are primary reasons behind bogus billing. Central GST Principal Commissioner Vikas Kumar acknowledged that complaints about bogus billing due to registration without verification are widespread across the country.
Measures to Curb Bogus Billing
To combat this issue, the Union Government is implementing a biometric system to significantly reduce such complaints. Additionally, the Taxation Commissionerate takes immediate action by cancelling registrations of identified bogus companies.
Conclusion
The alarming rise in tax evasion through bogus billing and bill swapping in Punjab calls for urgent and effective measures. The efforts by FOPSIA and the state government’s commitment to addressing these issues are crucial steps toward ensuring a fair and transparent tax system.
CAclubindia
