Rajasthan's Year-Long GST Survey Halt Fuels Tax Evasion, Causing Crores in Revenue Loss

In Rajasthan, an unannounced ban on GST surveys over the past few years has led to a significant drop in revenue. Since July 2024, the state's Divisional Commissioners of Taxes have been verbally instructed not to conduct surveys.

Nagaur: A year-long unofficial halt on surveys conducted by the State Tax Department in Rajasthan has emboldened those involved in GST evasion. The absence of surveys and roadside checks has allowed businesses dealing in iron, cement, pan masala, gutkha, and other goods to openly evade taxes.

Consequently, the government is facing a daily loss of crores of rupees in revenue. Experts say that the cessation of surveys has led to a surge in Goods and Services Tax (GST) evasion.

How Surveys are Conducted

The State Tax Department identifies taxpayers with suspicious transactions. This involves scrutinising discrepancies in GST returns, errors in e-way bills, or acting on confidential information to select locations for on-site inspections. Previously, teams would arrive at the business premises without prior notice.

Impact of the Halt

Sources indicate that the suspension of surveys has resulted in revenue losses for the state government, impacting development projects and creating financial difficulties in managing healthcare and education expenditures.

₹82,964 Crore Revenue Loss in Three Years

The total revenue loss over three years amounts to ₹82,964 crore. This significant revenue deficit is directly attributed to the department's senior officials' policy of not conducting surveys. This signals a worrying trend for the state's economic condition and tax collection system.

The Inspection Process

The department selects locations and conducts campaigns on major trade routes, border areas, and markets. Inspections involve verifying documents such as e-way bills and tax invoices for goods transported in vehicles. The driver is questioned, and the goods and documents are cross-checked.

Decline in Revenue Collection (in Crores of Rupees)

• 2022-23: ₹32,310 (2.3 percent)
• 2023-24: ₹24,896 (1.6 percent)
• 2024-25: ₹25,758 (1.4 percent)

Official Statements

“We adhere to the guidelines received from senior officials for surveys. Action is taken as per the rules upon receiving input. Currently, no surveys are being conducted.”
- Bharat Singh Rajpurohit, Joint Commissioner, State Tax Department, Nagaur

“We conduct surveys when necessary, following the Directorate's instructions and considering the provisions. Surveys haven't been conducted for quite some time.”
- Puran Singh, Additional Commissioner, State Tax Department, Ajmer Division