Excise Department’s ‘callous’ approach proving costly

Shivani Bhakoo

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Tribune News Service

Ludhiana, November 30

The lackadaisical attitude of the Excise and Taxation Department in collecting Goods and Services Tax (GST) has been causing massive loss to the state exchequer.

Organisers holding exhibitions, musical and award events, among others need to register with the department. However, things on the ground were completely different.

A senior official on condition of anonymity said the Excise and Taxation Department has been losing revenue on this account. “Suppose an exhibition is held at a hotel. The organiser visits us, seeks permission for 20 stalls and pay for the same. However, in reality the organiser sets up to 40-45 stalls. It is the duty of the department to ensure that inspectors visit the exhibition and collect charges for each stall.”

He said, “Many of organisers do not advertise, they simply send the invites through social media. Department comes to know about the event when it concludes.”

The official said boutiques owners were supposed to pay the GST. “No outfit in showrooms is less than Rs 20,000. However, they rarely issue bills. Five per cent GST is applicable on readymade products. Those running boutiques issue slips to customers but never pay taxes to the department. Had there been transparency and sincere efforts were made by the department, the Excise and Taxation Department would have been in profit,” he said.

The organisers hold musical and award events and charge for selfies with stars. For every such event, they need to pay Entertainment Tax or Service Tax but hardly anyone comes forward.

“Awards for self-reliant women are common these days, which are all paid. Who has given the right to organisers to hold such events? Organisers come forward and just announce awards on social media,” said Neha, a housewife.

Ironically, the department till date has not been able to catch a single defaulter.

Pawan Garg, District Excise and Taxation Commissioner, said everything is online. They seek permission, pay taxes accordingly to the department. When asked if department inspectors’ conducts surprise checks to see whether there has been any tax evasion, the official said they do visit and no complaint has been received so far.