Hyderabad: The lift supply market in the state is linked to an annual GST evasion scam amounting to approximately Rs 100 crore to Rs 200 crore.
Sources from the industry indicate that there is a widespread presence of suppliers providing lifts and elevators to consumers without issuing any bills. These suppliers operate with GST numbers and source assembled parts for lifts from other states and local manufacturers.
The evasion occurs when these suppliers fail to pay the required GST based on the difference between their procurement costs and their selling price to consumers. In simpler terms, these suppliers claim GST refunds because the source companies mention the purchases attributed to the suppliers with the commercial taxes department. However, the same suppliers do not provide any receipts to consumers.
As a result, the difference between these two transactions ends up in their pockets rather than being paid as tax to the govt, according to industry sources.
Despite knowing this practice, action is not being taken, sources said. “Bringing the Telangana Lift Act will put an end to this practice and provide revenue to the govt,” a source said. tnn
