Punjab Minister Harpal Cheema directs officials to tighten noose around tax evaders

Punjab Excise and Taxation Minister Harpal Singh Cheema on Tuesday directed officials to further tighten the noose around tax evaders in the service sector.

He asked the State Intelligence and Preventive Unit (SIPU) and the Tax Intelligence Unit (TIU) to work in tandem to trace, track and nab the tax evaders in the sector.

Chairing a review meeting of the SIPU, Cheema said the department has performed remarkably in checking tax evasion in the trade of goods, and now, the need of the hour was to put a strong check on tax evaders in the field of the service sector.

He asked the department to formulate a strong strategy against those registered and non-registered service providers who were not paying goods and services tax for the paid services being rendered by them.

Earlier, the officials apprised the minister about the goals and achievements of the SIPU.

The newly formed SIPU, which was earlier known as the mobile wing of the taxation department, has recorded a 38 per cent increase in the total penalty from goods in transit by charging a penalty of Rs 190.94 crore and Rs 43.54 crore from inspections during the financial year 2022-23 as against the total of Rs 169.13 core in 2021-22.

Out of this, a penalty of Rs 121.43 crore was charged only from iron and steel scrap and finished goods, according to an official statement.

The minister was apprised that the TIU has reversed the Input Tax Credit (ITC) amounting to Rs 1,294.04 crore, besides blocking the ITC worth Rs 52.98 crore up to March 31, 2023.

This includes ITC reversal of Rs 1,084.95 crore with the inspection of 10 major cases.

The TIU found that some of the life insurance and health assurance firms were claiming and utilising undue ITC, the statement said.

Cheema also launched the tax intelligence portal, an analytical tool developed by the Tax Intelligence Unit for state GST officers.

This portal would help the tax officials of the state to analyse and monitor tax collection and compliance in their jurisdictions.

''This system caters to the requirements of the field-level offices and enforcement and intelligence offices to identify defaulters and tax evaders. It provides backward supply chain verification linkage and actionable reports to field formations,'' he added.

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