HYDERABAD: The Goods and Services Tax (GST) regime was to end the era of checkpoints at State borders that often delayed the transportation of goods. But since November 2017, the TS commercial tax department has conducted close to 15 surprise checks to nab tax evaders at the borders. However, a senior official from the central tax and customs opined that continuing practice of checks done by the state defeats the purpose of no checkpoints while goods are transported within states.
The commercial tax department embarked on tax raids from November after it came to notice that some traders were transporting goods without paying GST. One of the key positives of the GST regime was the abolition of check-posts at all state borders to facilitate free movement of goods and services. All 16 border checkpoints were shut permanently from the day after GST came into effect on July 1, 2017, and the staff redeployed. The commercial tax department is also mulling to establish mobile inspection teams in the future.
“If the states do checking of goods for compliance and other things it completely defeats the purpose of having GST that was supposed to get rid of all such checkpoints and checking,” said a senior official with the central tax and customs. “If the states are doing the checking it shows some distrust towards the taxpayers,” he added.
“The raids are being done so as to bring some order, soon after the checkpoints were withdrawn, there was chaos. We waited and watched for a few months for things to settle down but then decided to act. The checks we do is to bring some semblance of order in terms of following the rules,” said a senior official with the commercial tax department. “We would prefer it if the central tax and customs officials also took part in our enforcement drives. It is an initiative that has to be taken up by the topmost officials of both departments,” he added.
E-waybill fiasco.
With checkpoints now gone, traders were to generate an electronic waybill (E-waybill) for transport of goods above an invoice of Rs 50,000. The system was to come into effect from February 1 but was rolled back due to technical glitches and was deferred until further notice from the Central Board of Excise and Custom (CBEC), however, the state commercial tax department has gone ahead and made e-waybill mandatory for the goods from February 10.“We have to ensure that the transporter is carrying all the needed documents manded by the law if one paper is missing we ask them to produce the paper or pay the fine. No point in letting them operate with incomplete paper work,” said the commercial tax department official.