No scope for fraud, tax leakage must be completely prevented: Karnataka CM
Bengaluru: Karnataka Chief Minister D.K. Shivakumar directed the officials of the Commercial Tax Department that there must be no scope whatsoever for tax fraud, saying strict measures must be taken to completely prevent tax leakage.
Holding a review meeting of the Commercial Taxes department at Vidhana Soudha, the CM said that by the time the next review meeting is held, every instruction I have given today must have been implemented. In the next meeting, I will personally review your performance with many real examples.
“No goods-carrying vehicles should cross a check-post at our state borders without the necessary documents. There must be no scope for tax evasion. There is no room for any kind of compromise or negligence in this,” he instructed the officials.
“Up to May 2026, while the state of Telangana has achieved 10 per cent growth in GST collection, our state has achieved 9 per cent growth. Maharashtra has achieved 5 per cent, Gujarat 5 per cent, Tamil Nadu 7 per cent, and Uttar Pradesh 8 per cent. We are in second place in the country. Find the ways to come in first place,” he told the officials.
“I am observing everything. Information reaches me from every region of the state on a regular basis. From Chikpet to Gandhinagar and from the border districts to every part of the state, I have my own contacts. Any lapse or negligence in the functioning of officials will come to my notice. Therefore, the information reaching me and your performance reports must match one another,” he said.
“Achieve good coordination with the Commercial Tax departments and enforcement agencies of neighbouring states. Tax evasion must be effectively prevented through information-sharing and joint operations,” he noted.
“Today we have information on about 12 lakh taxpayers. You have the capacity to analyse them from a 360-degree perspective using technology and data analytics. If you use this opportunity properly, you are capable not only of achieving the target set for you but of exceeding it,” he said.
All Joint Commissioners must achieve and demonstrate the tax-collection targets allotted to their respective divisions. Strict measures must be taken to ensure tax returns are filed on time, to identify non-filing of returns, and to ensure returns are filed within the stipulated period, he said.
Expressing happiness over Karnataka achieving the second-highest GST growth in the country, Chief Minister D K Shivakumar said he was confident that the state would exceed tax collection targets for the current financial year.
“Officials of the Finance department, Finance Adviser L K Atheeq, and Additional Chief Secretary of the Finance department Ritesh Kumar have offered several suggestions to improve the department’s performance. The responsibility of implementing them strictly now rests on all of you. I have full faith in the officials. I am also confident that all of you will strive to fulfil my expectations,” he said.
“Our intention is not to cause unnecessary trouble to anyone. Honest taxpayers must be taken into confidence. Every tax-paying citizen must be treated with dignity and respect. Likewise, if you take the Department’s staff into confidence and work intelligently, it is possible to achieve beyond the target,” he added.
“If you have difficulties, let me know; we will resolve them if it is genuine. I have respect and value for honesty, loyalty, and hard work. If there is no honesty, I will take ruthless action. Let us all together successfully carry out this important responsibility of mobilising resources needed for Karnataka’s development,” he said.
“The state has made good progress in GST collection. There has been 9% growth. It is satisfying that the state has achieved higher growth than the states of Gujarat, Tamil Nadu, and Haryana,” he added.
“In collaboration with IIT Hyderabad, close surveillance is being kept on GST fraud through the GST analytics portal. Although several types of GST fraud have been detected through this, achieve complete progress in this. Comprehensive 360-degree monitoring covering GST collection, leakage, and fraud is possible,” he said.
“Fake invoices and fake Input Tax Credit have become a major challenge. We are handling this challenge capably. By detecting bogus companies, we have collected Rs 166 crore. Let the rate of legal action against those who set up bogus companies increase. Until now, the rate of arresting those committing bogus operations was low. Officials have stated that arrests have now been increased. In addition, when lapses are found on the part of staff, warnings have been issued through strict measures,” he said.
“We have implemented a citizen-friendly system that provides taxpayers the necessary advice and cooperation without them needing to run from pillar to post. It resolves all their tax-related confusions online itself. We have set up a system that provides taxpayers advice, cooperation, and quick resolution of tax-related confusions online,” he explained.
“The decline in performance in the Mysuru division has been taken seriously. Giving excuses and reasons for the decline in performance is not acceptable. Results matter. Whatever technical difficulties there may be, resolve them, and I expect good performance,” he called on.
“The failure to promptly handle pending appeals cannot be tolerated. Senior officials must keep a closer watch on the disposal of appeals. There is a need to simplify the system further to make it more taxpayer-friendly,” he concluded.