More than 10,000 companies served notice by Delhi govt for tax evasion

More than 10,000 companies served notice by Delhi govt for tax evasion

Delhi government on Wednesday issued notices to as many as 10,800 companies for tax evasion. All of these companies collected tax from citizens but have failed to pay full tax to the government.

Around 970 of these companies have paid no tax to the government from January to March this year. All the defaulters have been served notice under 3A of the GST Act to pay taxes that are due within 15 days.

Delhi Deputy Chief Minister and Finance Minister Manish Sisodia said the government will take stringent action against the tax defaulters if they do not comply immediately.

The Delhi State Trade and Taxes Department under Sisodia has started analyzing the return filing status of taxpayers registered in GST.

Sisodia on Tuesday held a meeting with the officials of the department where it was said that around 15,000 companies were analyzed, following which the Delhi government sent tax evasion notices.

Till now around 15,000 companies of around 7 lakh companies registered under GST have been evaluation and further vetting will be conducted. Companies who have defaulted on GST returns will face action, said Manish Sisodia.

GST collections in Delhi had dipped from the month of January to March this year by approximately Rs 3,777 crore due to the economic crisis triggered by coronavirus pandemic.

Last year, the Delhi government collected around Rs 5,792 crore as GST returns.

Along with these companies, 111 liquor companies have also been issued notice as they have not paid VAT.

The Delhi government has started issuing 3A notices to the defaulting 10,800 taxpayers and in case they fail to file their return within the prescribed time (15 days), the department will proceed with further actions.