PALAKKAD: An intelligence officer posted at Walayar with the Commercial Taxes Department said the dismantling of check posts could indeed lead to tax evasion.“Evasions will mostly take place in electrical and electronic items and those goods which attract 28 per cent tax under the new GST regime,” said the officer who did not want to be named.
“As there is no check post to verify all his goods, the buyer can declare a part of his consignment and transport the other goods without bills. Electrical, electronic and home appliances can be purchased from Tamil Nadu, and as there is no check post at Walayar, it can be transported and sold to retail outlets in Kerala. The retailer will also sell it to the consumers without bill and evade taxes.”
He said the 14 districts in Kerala each had only two or three squads. Each squad merely consists of an officer and three inspectors, making it difficult for them to inspect each and every vehicle.“For instance, if `10 lakh worth of electrical equipment is brought in a tempo or a mid-sized car from Tamil Nadu, and he succeeds in selling it in Kerala without bills, he makes a neat profit of `2.8 lakh,” he told Express.
It will be difficult to transport alcohol, spirit and petroleum products into the state because the Excise and Motor Vehicles Department check posts will function as before. In Nadupunni check post, for instance, poultry companies from Tamil Nadu were trying to pass off frozen chicken as ‘chilled chicken’, officers said.While frozen meat - whether fresh or chilled - attracted 12 per cent tax, meat which is not frozen - whether fresh or chilled - did not attract tax under GST. The driver of the unit container was told to pay 12 per cent tax.