Lok Sabha Question No. 3634 (UNSTARRED), answered on 2022-08-08
Subject: Payment of GST by Registered Dealers
Ministry: FINANCE
Asked by: Kotha Prabhakar  Reddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## UNSTARRED QUESTION No. 3634

TO BE ANSWERED ONMONDAY, AUGUST 08, 2022/ SRAVANA 17, 1944(SAKA)

## PAYMENT OF GST BY REGISTERED DEALERS

## 3634. SHRI KOTHA PRABHAKAR REDDY:

Will the Minister of FINANCE be pleased to state:-

- (a) the details of the number of registered dealers coming under the Centre who did not pay a single  rupee  or  paid  very  less  as  tax  under  the  Goods  and  Services  Tax  (GST)  since  its implementation, State-wise;
- (b) whether the authorities were plugging the loopholes in the tax collection mechanism and if so, the details thereof; and
- (c) if not, the reasons therefor along with the violations noticed/action taken on each trader till date?

## ANSWER

THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

- (a)  In  GST, the tax can be paid by the registered person either by debiting the electronic cash ledger or by debiting the electronic credit ledger. The details of active normal registered persons under Centre jurisdiction, who have paid NIL tax in cash under GST (that is, by not debiting any amount from electronic cash ledger) since its implementation, state-wise, are detailed in Table below.

Further, it is to mention that a large number out of such registered persons have discharged their entire GST liability through debit in their electronic credit ledger.

| State/UT          | No. of active tax payers   |
|-------------------|----------------------------|
| Jammu and Kashmir | 9,522                      |
| Himachal Pradesh  | 8,971                      |
| Punjab            | 25,633                     |
| Chandigarh        | 1,520                      |
| Uttarakhand       | 20,922                     |
| Haryana           | 43,189                     |
| Delhi             | 55,810                     |
| Rajasthan         | 75,167                     |
| Uttar Pradesh     | 222,448                    |

| Bihar                                      | 110,354   |
|--------------------------------------------|-----------|
| Sikkim                                     | 874       |
| Arunachal Pradesh                          | 1,321     |
| Nagaland                                   | 771       |
| Manipur                                    | 1,090     |
| Mizoram                                    | 855       |
| Tripura                                    | 2,285     |
| Meghalaya                                  | 2,617     |
| Assam                                      | 24,321    |
| West Bengal                                | 54,229    |
| Jharkhand                                  | 19,174    |
| Odisha                                     | 34,662    |
| Chattisgarh                                | 14,391    |
| Madhya Pradesh                             | 37,965    |
| Gujarat                                    | 82,441    |
| Dadra and Nagar Haveli &Daman and Diu (UT) | 737       |
| Maharashtra                                | 105,740   |
| Karnataka                                  | 72,226    |
| Goa                                        | 2,318     |
| Lakshadweep                                | 17        |
| Kerala                                     | 23,994    |
| Tamil Nadu                                 | 90,405    |
| Puducherry                                 | 1,345     |
| Andaman and Nicobar Islands                | 287       |
| Telangana                                  | 42,686    |
| Andhra Pradesh                             | 31,793    |
| Ladakh                                     | 686       |

(b)  and  (c)  Government  has  taken  a  number  of  policy  measures  to  curb  GST  evasion  by fraudulent  and  unscrupulous  persons.  Government  is  using  robust  data  analytics  and  artificial intelligence to identify and track tax evaders and timely appropriate action is taken against them to  safeguard  the  interest  of  revenue.  Some  of  the  recent  policy  measures  taken  by  the Government to plug the loopholes in tax collection mechanism are as under:

1. Provisions  have  been  made  for  cleaning  up  the  taxpayer  base  by  strengthening verification  of  business  entities  through  Aadhaar  authentication  for  new  registrations and  physical  verification  of  business  premises,  where  Aadhaar  is  not  authenticated. Further,  additional  grounds  for  cancellation  of  registration  have  been  provided  in  the rules.
2. Centralized suspension of registrations pertaining to registered persons who default in timely filing of returns is being carried out.
3. Provisions have been made to restrict the  generation of e-way  bills by  non-compliant taxpayers.
4. With effect from 01.01.2022, Input tax credit can only be availed by a registered person in respect of such invoices or debit notes which have been furnished by the supplier in
5. the statement of outward supplies in FORM GSTR-1 and details of which have been communicated to the registered person in FORM GSTR-2B.
5. With effect from 01.01.2022, a registered person is not allowed to furnish the details of outward supplies under section 37 in FORM GSTR-1 , if he has not furnished the return in FORM GSTR-3B for the preceding tax period.
6. Electronic invoicing system (e-invoice) has been made  mandatory  for  all  B2B transactions  for  businesses  with  turnover  exceeding  Rs.  20  crore  w.e.f.  01.04.2022. Further, this limit is being reduced to Rs. 10 crore w.e.f. 01.10.2022.
7. Beneficiary, who retains benefit or at whose instance a supply has been made without the issuance of an invoice, or invoice has been issued without supply, or excess ITC has been  availed/distributed,  has  been  made  liable  for  penalty  similar  to  that  of  actual supplier/recipient.
8. E-way bill has been integrated and tracking with RFID has been introduced. This would provide access to real time data of vehicle movements in order to keep a tab on GST evasion. Artificial intelligence tools such as NETRA (Networking Exploration Tools for Revenue Argumentation), BIFA (Business Intelligent and Fraud Analytics) & ADVAIT (Advanced  Analytics  in  Indirect  Taxation)  based  on  network  analysis  have  been implemented to identify risky taxpayers.
9. Nationwide special drive is being carried out against unscrupulous entities for availing and  passing  on  Input  Tax  Credit  (ITC)  fraudulently  on  the  strength  of  fake/bogus invoices.
10. In order to ensure comprehensive deterrent measure against GST  evaders, the information of cases booked by CBIC is also shared with other agencies like CBDT for tracking suspicious transaction records and initiating action related to bogus expenditures, etc.

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