The government has issued an order to enhance coordination between State Mining Authorities and GST authorities to curb tax evasion related to illegal mining and mineral transportation. State Mining Authorities frequently uncover illegal activities such as unauthorized mining, mineral transportation, and other violations, which may indicate non-compliance with GST regulations. The shared information can reveal issues like suppression of taxable supplies, non-registration, undervaluation, and improper input tax credit claims under the CGST Act, 2017.
Read more: Himachal Pradesh High Court - Where both Central and State GST authorities issue notices on the same subject matter, only one authority can continue the proceedings [Order attached]
To facilitate this process, each CGST Zone is required to appoint a Nodal Officer to liaise with State Mining Departments, ensuring a streamlined exchange of relevant information. A systematic mechanism must be established for the regular sharing of data on illegal mining activities. This information will be scrutinized to identify any GST-related violations, prompting necessary actions under the CGST Act, 2017 and its rules.
Upon identifying potential GST implications, the intelligence will be distributed to jurisdictional Commissionerates and DGGI formations for further action. Regular meetings with State Mining Authorities will be conducted to evaluate the system's effectiveness and address any operational challenges. This initiative aims to ensure that critical intelligence regarding illegal mining is effectively utilized to prevent GST evasion.
