In an effort to bring taxi operators within the tax net, the Commercial Taxes Dept has issued notices to roughly 250 tourist taxi owners for failing to obtain GST registration.
Reetu | Oct 19, 2024 |
Tourist Taxi Owners get Notices for Non-Registration under GST
In an effort to bring taxi operators within the tax net, the Commercial Taxes Department has issued notices to roughly 250 tourist taxi owners for failing to obtain GST registration. The notices were primarily intended for owners with a fleet of more than ten taxis. The process of issuing notices commenced almost three months back and continues.
Interestingly, the department has discovered a single owner who owns 14 taxis.
According to the information, taxi owners should register for GST if their annual income exceeds 20 lakh. According to calculations, 5 taxis equals an annual revenue of 20 lakh.
Entities with an annual turnover of more than Rs.40 lakh for goods and Rs.20 lakh for services must register for GST and pay taxes.
“We calculated that everyone owning more than five or six taxis has a turnover of Rs.20 lakh. If the turnover occurred between April 1 and March 31, they must apply for a GST number and pay tax within 31 days”, according to the official.
These taxi owners have been asked to submit car details, financial statements or financial accounts from 2017-18 to 2023-24, sales and purchase registers, copies of sales bills/invoices, bank statements for all savings and current accounts, copies of business contracts and/or agreements, and copies of filed income tax returns.
They have been asked to submit the appropriate information within the time frame specified, failing which the requisite enforcement actions as mandated under the GST law will be taken.
According to the Commercial Taxes Department, persons who own more than ten taxis did not register under the GST law for the business they operated, although they are liable for it. They evaded tax by failing to discharge their liability to pay tax under the GST law. The notice claimed that by failing to register under GST law and suppressing outward taxable supplies, they have breached the terms of Section 122 of GST law, which carries a penalty and requires payment of appropriate taxes under GST law.
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