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Govt loses revenue as petrol pumps fail to pay over Rs 33 cr VAT

Shillong, Dec 10: The state government has failed to realise Value Added Tax (VAT) of around Rs 33.97 crore till June this year from the petrol pumps in the state.

The reason for this remains a mystery as defaulting pumps were allowed to function with ease.

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A senior taxation official did not want to reveal the names of the petrol pumps and their respective dues as he only replied that 48 petrol pumps did not pay the dues.

Ten petrol pumps were closed as they were not able to pay the outstanding dues of Rs 16. 2 crore.

The denial of c-form/NOC for non-payment of VAT led to their closure.

The oil companies will not allow lifting from their respective refineries without C form/NOC.

As far as the action against the defaulting petrol pump owners are concerned, the official said demand notices were served and the matter was taken up under Bakijai (legal)  proceedings and issuance of C forms was  stopped.
The taxation department is on the job to digitise return filing by petrol pump owners and to integrate the same when developed with C form portal in order that purchase and sale data can be auto analysed by the system or till such auto analysis has not yet been developed, data can be physically compared by the department.
Sources said until the loophole of physical verification system is plugged, tax evasion by petrol pumps will continue to thrive with the alleged connivance of officers causing huge loss to the government exchequer.

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