GST collection: Karnataka govt to step up audit and inspection of e-commerce players

Asserting that the government will take measures to plug leakages with respect to GST collection in the state, Karnataka Law and Parliamentary Affairs Minister H K Patil on Friday said audit and inspection of e-commerce players will be increased.

The amendment bill will bring in 22 amendments to GST law out of which six are dealer-friendly measures and 16 are for ease for tax compliance and administrative measures. (Image Source: Pixabay/Representational Image)

Asserting that the government will take measures to plug leakages with respect to GST collection in the state, Karnataka Law and Parliamentary Affairs Minister H K Patil on Friday said audit and inspection of e-commerce players will be increased.

The Minister said this while piloting the Karnataka Goods and Services Tax (Amendment) Bill, 2023, for the consideration of the Legislative Assembly. It was subsequently passed.

"Tax payers in Karnataka during VAT era were 5,80,000, today during GST period it has increased to 10 lakh, so about 4.2 lakh taxpayers have come under the tax net. Karnataka has displayed an increasing trend in GST collection from Rs 44,816 crore in 2017-18 to Rs 81,848 crore in 2022-23. GST has immensely contributed towards an increase in our budget size and revenues," Patil said.

He said, "there is a perception that tax evasion is more in the service sector, but 56 per cent of our contribution is from the service sector."

BJP leader and former Chief Minister Basavaraj Bommai, Congress MLA Shivalinge Gowda, JD(S)' H D Revanna among others highlighted about instances of GST/tax evasion, and urged government take measures in this regard.

The Minister said, the government will take all necessary measures to plug GST leakages. "11,733 cases were inspected last year (2022-23) Rs 1,320 crore has been collected in the form of tax penalty. This is not a small amount, but still more measures have to be taken," he said, adding that honest efforts have to be made by officials in tax collection.

Pointing out that a drive had been conducted in the state against "bogus dealers", the Minister said, 1,600 cases were detected and about Rs 90 crore ITC (input tax credit) were blocked.

There is a need to take more such measures, and the government will do it, he said, adding, "also, audit and inspection of e-commerce operators will be increased."

The Karnataka Goods and Services Tax (Amendment) Bill, 2023, was introduced with an aim to overcome difficulties in the levy and collection of tax on intra-State supply of goods or services or both by the State government.

Piloting the bill for the consideration of the House, Patil said, the amendment bill will bring in 22 amendments to GST law out of which six are dealer-friendly measures and 16 are for ease for tax compliance and administrative measures.

The bill intends to include penal provisions applicable to e-commerce players in case of contravention of provisions relating to supply of goods and services made through them by unregistered persons or composition of tax payers.

The Bill also aims to decriminalise offenses by increasing the monetary threshold from Rs 1 crore to Rs 2 crore except for offenses related to issuance of invoices without supply of goods or services or both.

The Assembly today also passed Karnataka Transparency in Public Procurements (Amendment) Bill, 2023.

The bill is to amend the Karnataka Transparency in Public Procurements Act, 1999 (Karnataka Act 29 of 2000) to enhance the amount of construction works undertaken by the persons belonging to the Scheduled Castes and Scheduled Tribes from Rs 50 lakh to Rs one crore.

Karnataka Legislature (Prevention Of Disqualification) (Amendment) bill, 2023 was also passed by the Assembly today.

This bill is to make provisions to exempt the office of Legal Advisor to the Chief Minister and office of the Special Representative of Karnataka State at New Delhi from incurring disqualification for being an MLA or MLC on such appointment.

The bill stated that the amendments shall be deemed to have been inserted with effect from May 20.

The amendment has been made following the appointment of Virajpet Congress MLA and Senior Advocate A S Ponnanna, a legal advisor to Chief Minister Siddaramaiah, and senior MLA T.B Jayachandra as Special Representative of Karnataka State at New Delhi.

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GST collection: Karnataka govt to step up audit and inspection of e-commerce players

Asserting that the government will take measures to plug leakages with respect to GST collection in the state, Karnataka Law and Parliamentary Affairs Minister H K Patil on Friday said audit and inspection of e-commerce players will be increased.

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