Srinagar, Oct 03 (KNO): The recent Goods and Services Tax (GST) reforms aimed at easing compliance and lowering costs on essential commodities have been widely welcomed across industries and consumer groups. However, concerns are mounting over tax evasion practices in key sectors such as cement and automobiles, potentially undermining the benefits of the reforms.
According to the news agency-Kashmir News Observer (KNO), the reforms announced last month include rate cuts on
essential goods and the simplification of
return filing procedures.
While the overall response to the reforms has been positive, industry insiders and tax
experts
here have raised concerns over the
“Certain factories don’t
show the amount of production that is actually being produced but show less than
the actual in order to evade GST. The
remaining output is being sold without proper invoicing, leading to significant revenue losses for the government,” sources informed.
Such practices involve manipulating ITC claims, they said.
The automobile industry has also faced scrutiny in the past over classification
disputes and ITC misuse, though no recent cases have been officially reported under the latest reform regime.
The sources said that there is a need to
keep strict vigilance in this regard and enquire any such practices of fraud here— (KNO)
