From now onwards, Central and state tax officers will share information about taxpayers for enforcement action as the government. This step has been taken to check GST evasion. In order to make this possible, CBIC has launched an application for sharing such information between Centre and state ministry.
Currently, state tax officials administer and control 90% of the assessees below ₹1.5 crores annual turnover and the remaining 10% is with the central tax officers. For those assessees with an annual turnover of over ₹1.5 crores, the Centre and states share control in 50:50 ratio.
The central and state government officials had decided to scrutinise goods and services tax (GST) refund claims more diligently so that they can identify tax leakage. They will compulsorily investigate all fake claims and step up coordination between income-tax and GST authorities. It is decided that GST Network, CBIC (Central Boardof Indirect Taxes and Customs) and CBDT (Central Board of Direct Taxes) will share data on a quarterly basis for early identification and checking of fraud case.
This decision has been taken to avoid any further delay of payment of compensation to state ministry. The delay of compensation payment had been an big issue last year and now, Centre is taking every effort to avoid it in future.