Importers and exporters must compulsorily provide Goods and Services Tax Identification Number (GSTIN) in the documents from 15 February. The revenue department is preparing to curb the loss due to revenue collection from GST and to curb tax evasion. Under this, the Central Board of Indirect Taxes and Customs (CBIC) has issued a circular.
CBIC has said that some such cases have come to the notice in which exporters and importers have not given information of GSTIN in the bill of shipping and entry even after GSTIN registration. GSTIN is a PAN based 15 digit Unique Identification Number and is allotted to every registered body under GST. Importers have to deposit the entry bill with the customs department, while the exporters have to submit the shipping bill.
Tax evaders will be caught
The circular stated, “Exporters and importers registered under GST will have to mandatorily give GSTIN information in export / import documents from 15 February 2020”. Rajat Mohan, partner at AMRG & Associates said, “Exporters and Importers Providing GSTIN by compulsorily will increase the work of data analysis, especially in cases of international transactions. With this, the tax authorities will be able to arrest the tax evaders by showing a lower value on the border.
EY’s tax partner Abhishek Jain said that this would ensure the loss of revenue under GST and the figures of exporters and importers would be matched with GST figures.