TG to crack down on GST evaders to rev up revenues

Hyderabad: Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu, following an emergency meeting with top officials of the state Commercial taxes wing here on Friday, ordered strict action against evaders of Goods and Services Tax (GST) and directed steps to be taken to ensure a surveillance system that monitors traders and service providers continuously.

Taking serious note of the decline in the wing’s tax collections, which has impacted the achievement of broader targets in revenue generation, the Finance Minister observed that negligence by officials could jeopardise the state’s revenues. He asked senior officials to use AI technology on a regular basis to strengthen monitoring.

With GST 2.0 set to take effect on September 22, the Finance Minister examined the declining revenues in the current financial year, while ordering a crackdown on GST evaders in the state. The officials of the Commercial taxes wing were warned of action if they failed to achieve the revenue targets.

The state government decided to also study the revenue losses due to GST rate rationalization and take appropriate action.

The Deputy CM advised officials to formulate an action plan to overcome the challenges faced in the collection of taxes arising from transactions happening across the state. He reviewed the progress achieved this year compared to last year in enforcement, audit, and other divisions of the Commercial Taxes Department. The officials were asked to form internal committees to study ways of increasing revenue and to submit related reports.

Bhatti also announced that he would conduct a review of the Commercial Taxes Department’s progress once every 15 days and directed officials to study in detail and submit a report on the revenue losses that the state could incur due to GST rate rationalisation.

The entire Commercial Taxes machinery should strive to achieve the prescribed revenue targets, the Deputy CM stated. He suggested that the areas where revenue is being lost should be identified and that staff performance and business transactions at the field level continuously monitored from the central office.