The Tax Research Unit set up by the Commercial Taxes Department has helped Tamil Nadu recover ₹1,523.95 crore under the Integrated Goods and Services Tax (IGST).
The IGST is levied and collected by the Centre on inter-State supply of goods and services and settled with the States. It has a complex settlement mechanism. Goods and Services Tax (GST) is realised fully based on consumption which is of two categories -- one by the business and another directly by the consumers in the State. The taxpayers avail of Input Tax Credit on the IGST supplies and adjust them towards their GST tax liability in the respective State. The Input Tax Credit has to be claimed by November of the next financial year.
“We established a Tax Research Unit on December 30, 2022,” said a senior government official. The unit analysed the patterns in IGST and identified around 600 companies. “We found that 380 companies have not utilized the IGST credit and a sum of ₹3,046 crore was lying in the Central government kitty. We have got 50% of that as State’s share in March, April and May 2024,” he said.
“This is the first phase and the research unit will continue to analyse the IGST data further. We have found cases where machinery is imported under IGST and tax credit remaining unclaimed,” the official pointed out. The department has also tied up with IIT-Hyderabad for Big data analytics to study the aspects of revenue losses, the official added.
Through this initiative, the government has found mismatches in the monthly and yearly returns filed by traders and have recovered ₹150 crore as revenue in recent months, he noted.
Also, the State government has appointed a panel under the Chairmanship of Arvind Subramanian, former Chief Economic Adviser to Government of India to study the settlement pattern of IGST to Tamil Nadu, he added.
Published - June 13, 2024 05:50 pm IST
