Lieutenant-Governor Vinai Kumar Saxena wrote to Chief Minister Arvind Kejriwal after taking note of media reports.
| Photo Credit: ANI
Lieutenant-Governor Vinai Kumar Saxena on Monday “advised” Chief Minister Arvind Kejriwal to ask Delhi Finance Minister Atishi to initiate a detailed enquiry into alleged goods and services tax (GST) evasion in the city and tighten the tax administration.
Issuing a statement in response, the Delhi government said it vehemently condemns any instance of evasion and is committed to enforcing strict compliance with tax laws.
Taking note of media reports from last month, Mr. Saxena told the CM in a letter that the city recorded the highest number of tax evasions in the country, with 483 “bogus” firms being detected, amounting to evasion of ₹3,028 crore.
“It is indeed dubious that the Capital tops the list of tax evasion amongst all States and Union Territories, with the one on the second place behind Delhi by as much as ₹827 crore. This is a serious matter in which the possibility of collusion of officials in the GST Department cannot be ruled out,” the letter read.
“This not only reflects poorly on the state of tax governance in the national capital, but also results in a huge loss to the public exchequer. This resource could have been meaningfully utilised for investments in public interest,” it added.
The L-G also pointed to a report by the Central Board of Indirect Taxes and Customs released in January, which highlighted the issue of “bogus registrations and fake invoices” in the country.
The report for the third quarter brings out “shocking” facts about the extent of tax evasion prevailing in Delhi, Mr. Saxena said, referring to the alleged GST evasions.
The Delhi government, in its statement, said strictest possible action will be initiated against the violators at once.
It, however, expressed dismay over the fact that its proposal to develop a software in collaboration with Indian Institute of Technology, Hyderabad to target tax evasion and improve revenue collection has been languishing in the bureaucracy for almost a year.
The Aam Aadmi Party government added that a full year has passed since the initiation of the proposal in February, yet it is slated to be presented before the cabinet only now. This delay has only happened because of the Government of NCT of Delhi Amendment Act, it said.