Punjab: Mandi Gobindgarh logs fewer registrations, higher cancellations
LUDHIANA: Notorious for bogus billing, Mandi Gobindgarh has become perhaps the only GST division in Punjab to have more cancellations and surrenders (5,451) than registrations (5,296). These figures for 2017 (when the goods and services tax was rolled out) to November 2021 came out in TOI's RTI (Right to Information) investigation.
Usually, the GST number is cancelled in case of tax evasion or default. The dealers can also surrender this number if they wish to discontinue the business activity. No other similar or smaller division has such a shocking volume of cancellations. Patiala-1 had 5,432 GST registrations in the investigation period and only 1,420 cancellations and surrenders. Even the figures for bigger divisions are lower than Mandi Gobindgarh's. Amritsar-1 with 7,071 registered dealers has only 1,771 cancellations, while the colossal Ludhiana South with 14,086 dealers had 4,621 cancellations.
Commenting on the issue, Fastener Suppliers Association of Ludhiana president Rajkumar Singla said: "It is no surprise. Mandi Gobindgarh's total cancellations could be highest even across India, while these are sure the highest for any division in Punjab. It indicates a huge quantum of bogus billing and tax evasion, and that the taxmen have started catching the evaders. A lot needs to be done to end these financial crimes and protect the honest and genuine businessmen.
