Traders evading GST big time
Everyone see attached a receipt from a trader JK paints in sector 9 Noida. Millions of traders do business without a GST receipt like this and evade taxes. This leads to black money generation.
Also imagine the supplies, 75% coming in kachha and may be 25% in pakka. Thats how its sold.
If Govt tracks this properly, very likely that monthly GST revenues will triple. So much more can be done on development front. more
Such things happen in India only. Bunches of laws are enacted every now and then in every matter but none of them are flawless leaving scopes for evasion of the provisions by vested interests. The illustration presented in the post has become a practice all over the country and businesses are issuing such pieces of paper to consumers for their satisfaction. Neither its secret and openly being practiced by majority of the business houses being aware that the administration has no willingness to plug such loopholes with heavy hands fearing facing of strong protests from the business community and losing in elections. more
The CGST Act does not require small business with turnover up to 20 lakh not to register under GST. The CGST Act is framed by IAS officers who have no experience of Business. There are many flaws in the Act which need to be removed. 1. Input Tax Credit should be abolished as GST fraud running into hundreds of crores is being done using this provision. As per Finance Ministry ITC claimed is 400% of GST collection. 2. Removal of Input Tax Credit will also result in less filing of Returns. The return filing is causing lot of problems to all businesses as Notifications issued practically every week are making the compliance very complicated. 3. According to PM the GST was supposed to be good and simple tax, but it is made so complex that people have to approach Advance Ruling Authority (ARA) for interpretation. ARAs are giving contradictory rulings for the same issue. 4. GST rates need to be rationalized to three rates of 5%,10% & 15% without input Tax Credit. 5. Services which were exempted under earlier Service Tax Rules should be kept out of GST. 6. All types of Business should register under GST irrespective of turnover. more
Covid 19 has thrown a problem for Government and the Buyers. No receipt is given in market for paints,clothes, consumer goods, furniture etc. If we ask we get a katcha ( with a address unknown) receipt. They may be conveniently talking to local authorities and political leaders. more
The practice of under billing or no billing is very much there in all States with the connivance of Revenue Authorities and political support. The businessmen who indulge in this practice pay monthly to GST/VAT officials and local politicians. Unless the officials are made accountable for any lapse, nothing will change. The help of cameras/sensors should also be availed to nail such offenders. The Govt. should reduce taxes to maximize collection. High rates of taxes lead to higher pilferage. Lower rates with stringent punishments to tax evaders and dismissal of lax/corrupt officials will help in arresting this menace. more
This practice of issuing `Estimate' is routine in small hardware shops and this may be a modus operandi of avoiding GST. However, it may also be possible that that trader is on `Summary Assessment'. To my knowledge, if total annual turn-over is less than or equal to one crore, then that trader pays fixed amount. Audit report is not required though he may, perhaps, have to file return. more