New hi-tech system to check GST, VAT evasion at state borders

LUCKNOW: A new radio frequency identification (RFID) system will be operational at all the prominent border points in Uttar Pradesh from Thursday aims to prevent traders from evading tax (GST, VAT) on goods ferried by trucks.

With this, UP is said to have become the country’s first state to introduce a fully automated recording and reporting mechanism to check tax evasion that dealers often indulge in by offloading the consignment within the state for local sale after reporting that the goods were meant for sale in some other state.

“The ultra high-frequency RFID system will be operational

EVERY TRUCK ENTERING THE STATE WILL HAVE TO APPLY FOR TRANSIT PERMIT TO RECEIVE AN RFID TAG

at 41 entry and exit points across UP from Thursday after we made successful trials,” commercial tax commissioner Kamini Ratan Chauhan said.

The system, she claimed, would have an effective control over tax (GST/VAT) evasion by trucks on borders.

Under this system, every truck entering the state will have to apply for transit permit as per the existing system to receive an RFID tag assigned to its number. Tags will be pasted on the trucks’ windscreens.

“More than 30,000 trucks have already been issued RFID tags, one tag costing Rs 100 only,” he said.

All the 41 entry/exit points within the state, according to the official, have been equipped with RFID readers to identify vehicles and transit the data of entry/exit in real-time to a centralised RFID server at the command centre headquarters,” an official explained.

This, he said, would help in knowing if a particular truck actually crossed over to another state or offloaded the goods in UP only to evade tax.

“The identified entry and exit points have poles erected on both the sides of the roads with RFID readers installed on it. Each reader is equipped with data network. The data read from the RFID tags will be communicated to the centralised RFID server,” he said.

He said tax evaders were exploiting the existing system. They declared the goods to be transited from the state of UP but delivered the same within the state, resulting in loss of revenue to the government, he added.

The department has plans to integrate the RFID tags with the toll plazas too. “Discussions with the NHAI are on to integrate our RFID system with the toll plazas, Chauhan said.

Some of the 41 entry and exit points with RFID system are located in Baghpat,Garhpur, Loni, Thakurdwar, Sunoli, Harinagar, Sanya, Murraha, Rupahdiya and Chaukhata, Barkala, Meharona, Barni and Kotwan.