India

Modi Government Offers Reward For Information On Those Who Evade GST Tax

Here is your chance to pocket rewards from the Modi government by giving information on those who are evading GST.

ThE ‘GST informant reward scheme’ is to be rolled out by the Revenue Department to check tax evasion by unethical traders & business.

“The scheme is being planned to check tax evasion. Informers will be rewarded for providing specific clues regarding violation of GST laws,” the official told a leading daily. The GST informant reward scheme would be announced soon, he added.

As per guidelines, informants & government officials who help in the seizure of drugs are rewarded according to the size of the seizure.

Currently, an Income Tax department informer can earn up to Rs 5 crore for providing information regarding black money stashed abroad.

Regarding benami transactions, guidelines state that informants can earn up to Rs 1 crore for their information.

AMRG Associates Partner Rajat Mohan said a generous reward scheme on the lines of Income-Tax law could empower revenue struggling exchequer with huge capabilities to track and punish unseen and untraced tax evaders.

“What needs to be seen is whether the government would be generous enough to attract a bigger pool of information or would it be ‘penny wise pound foolish’,” Mohan added.

EY Tax Partner Abhishek Jain said: ”This scheme, if implemented, would aid in unearthing black money and checking tax evasion by businesses. Where successful, this could help boost tax collections by the government as well.”

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