Catch-22 as Excise, commercial taxes departments lock horns over Rs 54 crore dues

However, the Commercial Taxes department officials concerned refused to comment on the issue.
Image used for representation
Image used for representation

HYDERABAD: The dispute between the Commercial Taxes and Excise departments over payment of Rs 54.53 crore Goods and Services Tax (GST) remains unresolved as the latter has refused to pay the amount and is reportedly planning to take legal action.

The Commercial Taxes (CT) department on March 15 this year issued a show-cause notice to the Excise department to pay Rs 54,53,75,754 towards GST for supplying holograms to distilleries and depots between 2017–18 and 2023–24. The Telangana State Beverages Corporation Limited (TSBCL), which supplies holograms at 30 paise each to the distilleries, has to pay 18% GST, contended the authorities of Commercial Taxes. According to sources, the Excise department did not pay the GST even two months after receiving the show-cause notice.

Interestingly, the tussle between the two government departments will ultimately benefit the Central government, if the Excise department pays the tax. The Commercial Taxes department officials said in the show-cause notice that the Excise department has to pay 9% CGST and 9% SGST. If the Excise department pays the tax, then Rs 27,26,87,877 will go to the Central exchequer. If it does not pay the amount, there would be no loss to the State’s exchequer. It means, if the Excise department responds positively to the Commercial Taxes department’s show-cause notice, the state would suffer a loss of Rs 27.26 crore.

However, the Commercial Taxes department officials concerned refused to comment on the issue. When contacted, an official said: “It is a matter between two government departments and it is not appropriate to speak to the media.”

It all started when the Congress government felt that though the Excise revenue increased in the past, the Commercial Taxes department did not get the tax amount. Now, it is a catch-22 situation for the government.

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