GST evasion of Rs 12K crore detected b/w April-Nov: Dr John Joseph

Wednesday, December 12, 2018

New Delhi, 12th December, 2018:
A lot of tax evasion has been going on even with the E-way bill under Goods and Services Tax (GST), a top Union Finance Ministry official said at an ASSOCHAM event held in New Delhi today.
“From April to November itself, from the current period, we have detected almost Rs 12,000 crore worth of GST evasion,” said Dr John Joseph, Member (Budget), Central Board of Indirect Taxes and Customs (CBIC) in his inaugural address at ASSOCHAM National Seminar on GST.
Dr Joseph who is also Member (Investigation), however informed that almost Rs 8,000 crore has been recovered.
Adding that compliance issues in the GST is much-much serious, Dr Joseph said, “This is a huge evasion compared to what happened to in the central excise side or the service tax era.”
Noting that it is merely 5-10 per cent people that spoil the name of entire industry, he impressed upon the need to improve the compliance mechanism.
He also said that advance ruling is a real serious issue and the government is coming with some solutions.
“I do agree that industry is having serious problem with regards to advance ruling, we have been seeing that in the case of solar power. Currently we go through the entire thing, study the issue and then issue a clarification. Once the clarification is issued, the entire advance ruling thing becomes null and void,” said Dr Joseph.
He further said that the industry will have to adjust to the situation till trust is being developed between the centre and the states, as it has only been one and a half years of GST.
On the dispute resolution issue, he said that there is a similar situation which is likely to prevail for some time. “We are all into solving this issue to a great extent.”
He said that on the GST Network (GSTN) side, while most issues have been solved, new returns are going to come through as well. “In those returns, I can assure you, we are going to have a beta version initially, so that all of you have enough time to see whatever the problems, pain points in filing the return, going through the return or what can be done to improve the quality of the return.”
“Things that happen in the past, may not happen this time,” added Dr Joseph.
On whether the election results are going to be bad for the GST or not, he said, “I can tell you very clearly that it is the very same politicians whether in the opposition or the ruling party, they all came together to conceive this project. This is one of the unique project in the world, which shows okay we need to come together to see that these are the right things to be done.”
He further said, “That is of the model that has come into the picture, they will not be throwing out, I can assure you. May be some procedural changes can definitely happen.”
Amid others who addressed the ASSOCHAM seminar included – Mr Pratik Jain, chairman, ASSOCHAM National Council on Indirect Taxes and Mr Puneel Bansal, managing partner, NITYA Tax Associates.

ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. It was established by promoter Chambers, representing all regions of India. Having in its fold over 400 Chambers and Trade Associations, and serving over 4.5 lakh members across India. ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to redefine the dynamics of growth and development in the Knowledge Based Economy. More information available on
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