Govt sends notices to 5,584 firms for not filing GST returns

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The Delhi Government on Friday sent notice to 5,584 companies under GSTR act 3A for not filing the tax returns.  Significantly, the Government is also making a list of tax defaulters.

While nine sectors including E-Commerce, insurance and financial services  were not affected by the pandemic according to Deputy Chief Minister Manish Sisodia, around 935 companies under these sectors have paid zero tax and 2017 companies have paid 50 per cent tax.

Sisodia who also holds the portfolio of Finance Minister said that Delhi government is working round the clock to increase the revenue which will help the government to perform various development works and also COVID works. “It was found that 10800 companies registered under GST have either paid no tax or paid lesser tax to the Delhi government in the last quarter. The Delhi government has initiated action against these companies. VAT notices have been sent to 36 companies for not filing tax returns,” said Sisodia.

The minister observed that nine sectors such as Automobile, Electronics, E-Commerce, Insurance, Financial Services, Consulting, Pharmaceuticals, Security and Healthcare sectors were not affected by the COVID-19 pandemic.

"In reference to the GST collection for FY 2020-21, I have analysed the data for the Quarter 1 collection. Cognizant that the COVID-19 pandemic has affected consumption, a deep dive analysis was conducted of those sectors whose consumption would likely be unaffected by the pandemic and the resultant lockdown. Some industries, like e-commerce, would have possibly grown in term of their sales. The sectors are: Automobile, Electronics, E-Commerce, Insurance, Financial Services, Consulting, Pharmaceuticals, Security and Healthcare," noted the Deputy CM.

He also observed that the Delhi government will strictly scrutinise the reasons behind not filing tax returns by these companies from unaffected sectors.

According to finance department officials,

Delhi Government will strictly scrutinise the reasons behind not filing tax returns by these companies from unaffected sectors.

He further observed, "In view of this, enclosed is the list of 935 dealers who have paid 0 in Q1 2020-21 and 2017 dealers who have paid less than 50 percent of what they paid in the previous corresponding quarter (Q1 2019-20). Since the dealers’ sectors were probably unaffected, further scrutiny of their relatively piecemeal tax payment may be undertaken."

Earlier,  Sisodia directed the Dialogue and Development Commission of Delhi (DDC) to prepare a detailed study to improve the revenue base in Delhi.

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