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Surajkund Crafts Mela: Poor Internet connection forces visitors to pay in cash

GST evasion fears abound as vendors, shopkeepers avoid issuing receipts

Surajkund Crafts Mela: Poor Internet connection forces visitors to pay in cash

Exquisite craftsmanship on display at a shop at the International Crafts Mela at Surajkund in Faridabad. Tribune photo



Tribune News Service

Bijendra Ahlawat

Faridabad, February 14

The GST collection in the ongoing 37th Surajkund International Crafts Mela here is likely to be adversely affected in the wake of poor Internet network on the mela premises, prompting sellers to seek payment in cash and without proper bills. The fair that began on February 2 is slated to conclude on February 18.

“I purchased items worth more than Rs 6,000 on Friday evening but had to pay in cash as there was poor Internet connection in the area,” a woman said.

Most of the shopkeepers were found accepting payments in cash without giving any cash memo or bill. Most of the vendors have no record of sales and tax evasion can, therefore, not be ruled out.

“While a surge in the GST collection is expected every year due to larger participation of artisans and visitors, hurdles in making cashless payments could encourage tax evasion,” said Varun Sheokand, a resident.

With trade worth Rs 6-7 crore having been done in the past 11 days, the total turnover is expected to be around Rs 10 crore by the end of the fair on February 18, according to sources in the Tourism Department.

Over 1.5 lakh tickets for the fair had been sold till Sunday. A Taxation Department team is deputed every year to keep vigil on the kind of business done at the fair. With GST of Rs 3 crore was collected last year, it is expected to 15-20 per cent higher this year.

“We are monitoring the sales and will ensure proper tax collection,” said SS Malik, Deputy Excise and Taxation Commissioner, North Faridabad. He added that GST on the sale of the commercial sites (shops) leased officially or business done on the premises had been verified.

As many as 1,500 crafts persons, 300 artisans from various states and 45 countries are taking part in the fair. A footfall of eight lakh has been recorded so far.

Rs 3 crore tax collected last year

A Taxation Department team is deputed every year to keep a vigil on illegal business practices at the fair. While Rs 3 crore GST was collected last year, the amount is expected to be 15%-20% higher this year.

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