Karnataka commercial taxes department has directed physical verification of registered taxpayers under GST to ascertain their credentials. This directive to check tax evasion in sensitive commodities could set precedence and other states may follow Karnataka’s footsteps. Some of the sectors in focus include arecanut, cashew, rubber, auto parts, electrical goods, electronic goods, edible oil, readymade garments, timber, cement and construction material.
Entities that have generated e-way bills despite being a non-filer of returns or entities that have generated a large number of e-way bills compared to average e-way bills generated during previous periods or have a gap between inward and outward supply e-way bill could face such checks.A special IT module has been developed for this.
