Tax authorities stop around 30 goods vehicles over missing digital invoices, while offering businesses an opportunity to ensure voluntary compliance with sales tax requirements.
HYDERABAD: The Regional Tax Office (RTO) Hyderabad has launched an enforcement drive to ensure compliance with the Digital Invoicing system and relevant provisions of the Sales Tax laws.
During the drive, around 30 goods-carrying vehicles were stopped after the required digital invoices and other relevant documents were found missing, said Anees Ahmed Memon, Deputy Commissioner Inland Revenue (HQs), RTO Hyderabad, on Sunday.
Taxpayers Stopped Over Missing Digital Invoices
Enforcement authorities observed that some taxpayers, despite being registered with the Digital Invoicing system, were transporting consignments without issuing the required digital invoices.
Under applicable sales tax provisions, taxpayers are required to issue a tax invoice before the movement of goods.
The concerned taxpayers were informed of their legal obligations and advised to ensure compliance with Digital Invoicing requirements.
Enforcement squads calculated the applicable tax on the consignments, and the vehicles were allowed to proceed after payment of the due tax or production of the required digital invoice.
RTO Encourages Compliance at Dispatch Stage
The enforcement exercise demonstrated that taxpayers can comply with the law at the initial stage, particularly when goods are dispatched, rather than waiting until consignments are stopped during transportation.
Following the enforcement action, Adil Ahmed Siddiqui, President of the Hyderabad Chamber of Commerce & Industry, and S.M. Jafri, President of the Hyderabad Tax Bar Association, met Sajjad Akbar Khan, Chief Commissioner Inland Revenue, RTO Hyderabad.
They appreciated the transparent enforcement of the Digital Invoicing system and stressed the importance of giving the business community an opportunity to understand and comply with the new legal requirements.
They particularly highlighted the need for businesses to issue digital invoices at the time of dispatch.
RTO Offers Guidance to Business Community
Sajjad Akbar Khan assured the representatives that the RTO would facilitate and guide the business community towards the complete implementation of the Digital Invoicing system.
He also expressed willingness to pause further enforcement action, subject to an assurance from the Chamber and Tax Bar that they would play their role in ensuring immediate and effective voluntary compliance by the business community.
The opportunity is intended to facilitate taxpayers and promote compliance with the law, while allowing businesses adequate time to achieve voluntary compliance with Digital Invoicing requirements.
Drive Aims to Strengthen Tax Documentation
The initiative forms part of RTO Hyderabad’s efforts to promote a transparent and properly documented tax system, ensure compliance with sales tax laws and strengthen cooperation with the business community.
The enforcement drive also highlights the importance of issuing digital invoices before goods are transported, helping businesses meet their legal obligations and avoid enforcement action during the movement of consignments.