BENGALURU: Karnataka Chief Minister DK Shivakumar on Friday directed Commercial Taxes Department officials to adopt a zero-tolerance approach towards tax evasion, ensure that no goods vehicle crosses check-posts or state borders without valid documents, and step up enforcement against fake GST invoices and bogus companies.
Chairing a progress review meeting of the Commercial Taxes Department at Vidhana Soudha, the Chief Minister said Commercial Tax officers were the “strength of the government” and expressed confidence that the department would exceed its tax collection target for the current financial year.
The CM said he was closely monitoring the department’s functioning and receiving regular feedback from across the state, cautioning officials against negligence.
Calling for stronger coordination with neighbouring states and enforcement agencies, the CM said information sharing and joint operations were essential to curb tax evasion. He also asked officials to fully utilise technology and data analytics to monitor nearly 12 lakh tax payers through a 360-degree assessment.
“At the same time, honest taxpayers should not be harassed and must be treated with dignity and respect. Our intention is not to trouble genuine taxpayers. However, there should be absolutely no compromise when it comes to tax fraud,” he said, warning that strict action would be taken against dishonest officials.
The CM also directed all Joint Commissioners to achieve their tax collection targets, ensure timely filing of GST returns, identify non-filers and expedite pending returns. He said officials had the potential to double the current tax collections without violating the law or resorting to harassment.
Reviewing GST performance, the CM said Karnataka had recorded a nine per cent growth in GST collections, outperforming the national average and states such as Gujarat, Tamil Nadu and Haryana.
He noted that Telangana had recorded 10 per cent GST growth, placing Karnataka second in the country and urged officials to work towards securing the top position.
The CM said the department in collaboration with IIT Hyderabad was using a GST Analytical Portal to detect tax fraud through data analytics. He also directed senior officers to expedite the disposal of pending tax appeals and further simplify the tax administration system to make it more taxpayer-friendly.
The CM said the government had introduced a comprehensive online system to provide taxpayers with guidance, support and quick resolution of tax-related issues without requiring them to visit government offices.
Rs 166 crore recovered from fake firms
Fake invoices and fake Input Tax Credit (ITC) claims are a major challenge. Officials informed the CM that they had identified bogus companies and recovered Rs 166 crore. The CM said that the number of legal actions initiated against those who set up bogus companies should increase, he informed that until now, the number of arrests of those involved in such bogus activities was low. Now, arrests have been stepped up, said the CM.