Shimla
The state government has taken several ambitious steps to ensure financial discipline with a motive for improving the economic health of the state. Many new initiatives have been taken in every sector, to curb the wasteful expenditure.
With the objective of changing the system, the state government is steadily moving towards all-round development with new initiatives for enhancing the efficiency of the State Taxes and Excise Department. The major issue being faced in Goods and Services Tax (GST) administrations across the country is containment of registrations by fraudulent people. The entry of these fraudulent people into the GST system results into huge loss to state exchequer.
Himachal Pradesh State Taxes & Excise Department has also taken a number of initiatives to safeguard and enhance the GST Revenue.
In order to check the entry of fraudsters in the system, the department has set a target of hundred per cent approval of GST registrations in the manual mode after proper verification of documents attached with the registration application. Further, department is taking appropriate measures for physical verifications of registrants considered as dicey.
The department has long been engaged in identifying fraudulent tax evaders and ensuring timely actions. It has also been coordinating with Central tax authorities for timely action against tax evaders under their jurisdiction. Taking action, the department is in the process of establishing systems at the state headquarter for earliest detection of fraudulent taxpayers and is taking all necessary measures to identify fraudulent taxpayers upon the first indication of evasion so that loss to revenue could be minimized.
Going a step ahead, the department has taken new initiatives for revenue enhancement under GST for earliest detection of tax evaders, capacity building of tax administrators, identification of areas having scope of revenue enhancement and improving performance monitoring of field formations and rewarding the excellent performers in order to create a healthy work environment.
The GST Revenue Enhancement Project has been started to neutralize the deficit resulting from discontinuation of GST compensation. The project is expected to generate additional revenue of about Rs.250 crore, over and above normal tax buoyancy.
A new scheme “Sadbhavna Yojana- 2023” has also been launched by the Chief Minister, Thakur Sukhvinder Singh Sukhu to facilitate traders, manufacturers, wholesalers and retailers. Under this, pending cases under the General Sales Tax Act, Central Sales Tax Act and Entry Tax Act are being settled. Along with curbing tax evasion cases, utilizing information technology refresher courses are being organised to enhance capacity building of employees.
Further, the department has been raising state specific issues in the GST Council for revenue enhancement. The State has been successful in getting the approval of the GST Council for recording the place of supply in case of purchase by consumers and other unregistered valuing more than Rs. 50,000. The implementation of this recommendation has been helping the State in revenue augmentation, stated spokesperson of the department.
