Lok Sabha Question No. 3321 (UNSTARRED), answered on 2019-12-09
Subject: Collection and Payment of GST
Ministry: FINANCE
Asked by: Magunta Sreenivasulu Reddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO- 3321

To be answered on Monday, December 9, 2019/ /Agrahayana 18, 1941 (Saka)

## Collection and Payment of GST

3321. Shri Magunta Sreenivasulu Reddy:

Will the Minister of FINANCE be pleased to state:

- (a) the total central Goods and Services Tax (GST) collected during the last three financial years;
- (b) whether the amount matches with the amount expected as per Budget Estimates;
- (c) if so, the details thereof along with the measures taken to plug the loopholes in GST collection;
- (d) whether any instances of firms avoiding proper payment of GST tax have come to the notice of the Government; and
- (e) if so, the details thereof along with the measures taken to deal with such violations of GST?

## ANSWER MINISTER OF STATE IN MINISTRY OF FINANCE (SH. ANURAG SINGH THAKUR)

- (a) & (b) The details of budget estimate(BE) for Central Goods and Services Tax (CGST) and actual collections during FY 2017-18, FY 2018-19 and FY 2019-20 till November, 2019 are given below: (Amount. Rs. In crore)

| CGST                 | FY2017-18   | FY2018-19   | FY2019-20 (Provisional)   | [Apr-Nov]   |
|----------------------|-------------|-------------|---------------------------|-------------|
| Budget Estimates(BE) | -           | 6,03,900    | 5,26,000                  |             |
| Actual collection    | 2,03,261    | 4,57,534    | 3,28,365                  |             |

(source: Pr. CCA)

## (c), (d) & (e) Details of GST evasion cases booked by DGGI are as under:

| Financial Year              |   No. of cases booked |   Amount recovered (Rs. In crore) |
|-----------------------------|-----------------------|-----------------------------------|
| 2017-18(w.e.f. 01/07/2017)  |                   148 |                            757.81 |
| 2018-19                     |                  1473 |                          19395.3  |
| 2019-20(upto October, 2019) |                   999 |                           8134.39 |

For strengthening  monitoring tools to prevent GST evasion emphasis has been laid on system based  analytical  tools  and  system  generated  intelligence.  In  this  connection,  the  Directorate General of Analytics and Risk Management(DGARM) has been set up by the CBIC. Further, E- way bill squads have been activated for the purposes of random verification of the goods in transit.

It  is  submitted  that  GSTN  generates and shares red flag reports with Central and State/UT tax authorities showing comparison of GSTR-1 & GSTR-3B for liability analysis, GSTR-2A & GSTR-3B for  comparison of ITC being claimed by taxpayers, and analysis regarding taxpayers who have generated e-way bill but not filed tax returns. It is further submitted that as per rule 138E of the CGST  Rules,  2017,  when  a  taxpayer  fails  to file his  or  her  GST  returns  (GSTR-3B)  for  two continuous months, he or she will get blocked from generating an e -way bill . The said provision has come into effect w.e.f. 21/11/2019 vide notification No. 36/2019-Central Tax, dated 20/08/2019.

A new rule 36(4) has been inserted in CGST Rules, 2017 which puts a restriction that the ITC availed  by  a  taxpayer  shall  not  exceed  20  per  cent  of  the  eligible  credit  available  in  respect  of invoices or debit notes, the details of which have been uploaded by the suppliers under subsection (1)  of  Section  37  of  CGST  Act,  2017.  The  capping  of  ITC  would  lead  to  reduction  in  cases  of fraudulent ITC availment as well as increase in payment of tax through cash thereby boosting GST collection.

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