The tax department has detected GST (Goods and Service Tax) evasion of Rs 20,000 crore for the current financial year 2018-19, according to a PTI report citing a senior officer. The agency quoting the Central Board of Indirect Taxes and Customs Member (Investigation) John Joseph said that the department would be looking at steps to detect frauds and improve compliance. A meeting with the representatives of the real estate sector will be called to understand the transitions issues that sector is facing after the recent reduction in GST rate.
On Sunday, the GST Council headed by Finance Minister Arun Jaitley had reduced the tax rates on under construction apartments and affordable housing to 5 and 1 percent respectively. However, the builders will not be able to claim a credit on the inputs like steel and cement. Earlier the GST rates on under-construction property and affordable housing were at 12 and 8 percent respectively with an input tax credit (ITC).
The officer further said that out of the Rs 20,000 crore GST evasion detected for the period between April 2018 to February 2019, Rs 10,000 crore was recovered.
Stating that only 5 to 10 percent of the businesses are "black sheep" and bring bad name to the industry, he said the government will take more measures to increase compliance, and act against evaders in a way such that genuine businesses do not suffer.
Inputs from PTI