Officials unearth Rs 241-crore tax evasion

(Agencies)

NEW DELHI: A new set of rules have given the green light to GST authorities to attach property and bank accounts of those who fail to file tax returns despite repeated reminders. The move is part of a strategy to ensure better compliance — something that has been missing with a significant chunk of over 1 crore GST-registered entities failing to file returns on time.In a set of detailed standard operating procedures to be followed against “non-filers”, the Central Board of Indirect Taxes and Customs has cracked the whip against “defaulters”, drawing upon the powers given to it under the law.It has told top officials across the country to begin the “nudge” process three days before the deadline for filing GSTR-3A or the final returns, which are due by the 20th of every month. After the due date, a system-generated message is to be sent to all “defaulters” and will be marked to the authorised signatory of the entity as well as the proprietor of an entity, partners of a firm, directors of companies or kartas of HUFs.Five days after the due date, an electronic notice is to be served, giving 15 days to the entity to furnish the returns. In case there is no response, tax officials have been asked to undertake an assessment of the tax liability after factoring in the data available.“For the purpose of assessment of tax liability... the proper officer may take into account the details of outward supplies available in the statement furnished under section 37 (Form GSTR-1), details of supplies auto-populated in FORM GSTR-2A, information available from e-way bills, or any other information available from any other source, including from inspection,” the three-page SOP issued on Tuesday said.If the entity fails to respond to the assessment order for 30 days, officials can initiate recovery action, it added. While such provisions existed under VAT and service tax, they were only invoked in extreme measures.GST officials have unearthed a racket involving fake invoicing worth Rs 1,600 crore in the capital that resulted in a tax evasion of Rs 241 crore. The main culprit was arrested and remanded to 10 days of judicial custody by a local court, the government said. The accused had created several firms on the basis of unauthorised access to identity documents of various persons.