Concerned about declining revenue collections, Revenue Secretary Ajay Bhushan Pandey is understood to have held a special high-level meeting again on January 17 with tax officers. Highly placed sources told CNBCTV18 that when it comes to the goods and services tax (GST) collections, the revenue secretary has reset the collection targets for the indirect tax wing and has again informed the direct tax board to stay firm on meeting the budget target of Rs 13.35 lakh crore.
“To augment revenue collection further today in the high level meeting, revenue secretary has revised revenue collection aim for GST to Rs 1.15 lakh crore for each of the next two months and Rs 1.25 lakh crore for the last month of this financial year with specific focus on fraudulent input tax credit (ITC) claims as found in data analytics review,” the sources stated.
The meeting was attended by senior officials of the Central Board of Indirect Taxes and Customs (CBIC) and Central Board of Direct Taxes (CBDT), including their chairpersons.
The meeting was held to prepare an action plan and make the field functions more efficient to achieve the collection targets without any overreach, the sources confirmed.
Some of the areas of immediate check, which have been identified and have been informed to the field formations for immediate attention include: to look into the mismatch of supply and purchase invoices, data analytics of mismatch in GST return forms such as -- GSTR-1, GSTR-2A and GSTR-3B, failure of filing returns, over invoicing, recuperation of fake or excess refunds availed beyond the permissible limits, patching the tax leakages, action on checking fake or huge ITC claims, data analytic review of all the refund under inverted duty structure, etc.
Sources further said, a fresh drive by the revenue department will now begin, where, the taxman will start sending SMSs and emails to all identified fraudulent or excess ITC claimants, targeted defaulters, non-filers and those who provide mismatched information, etc.
“The SMSs and email will be aimed at informing the taxpayers to voluntarily repay fraud claims and refunds availed to avoid punitive action. This will be followed up by physical visits to such taxpayers by the field formations,” sources added.
The field formations would be required to report on a daily basis, sources added.
Weekly review meetings
Revenue secretary over the next two months of the fiscal, is understood, to be taking weekly review meetings, with both the direct and indirect tax departments, to review revenue augmentation measures and efforts along with actual revenue positions.
“Around 40,000 companies have been red-flagged for excess or fraudulent ITC availment and other tax-related wrongful issues through data analytics, out of 1.2 crore GST registrants and focus would be on these identified taxpayers, for the department. Field formations have been directed to conclude ITC recuperation without any overreach but in a stipulated timeframe,” sources added.
Field formations have been exhorted to put forward special efforts and to initiate actions against wilful tax evaders or those who are using fake invoices or inflated or fake e-way bills.
“ Principal Chief Commissioners and Chief Commissioners would have to update on their efforts put up in the field to curb tax evasion and leakages, action taken on checking fake or huge ITC claims, mismatch in returns filed, etc., on daily basis to both the tax boards, “ sources added.
Field formations will also inform the taxpayers on the recent decision by the GST council on the permissible ITC limits being reduced to 110% of the declaration made by the suppliers from 1st January 2020.
“The idea being, to ensure that taxpayers file in correct claims and returns for the month of December 2019 while filing their GST return-- GSTR-3B, to avoid any punitive action,” sources added.
