New Delhi: The Central Board of Direct Taxes (CBDT) has devised a new strategy to boost tax collection. Currently, the Board only has the stick for the evaders. Now, it is proposed to divide them into four categories and deal with them in different ways. This strategy was successfully used in Britain, Australia and Mexico to improve tax collection.
Between April and March in the current fiscal year, GST evasion to the tune of Rs 18,656 crore was detected in the country. This is about four times the corresponding figure (Rs 7,031) for the last year.
The GST payers would be divided into the following four categories:
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Disengaged: Those who deliberately and consciously evade the tax.
Resistor: Those who believe that the system for payment of the tax is too complicated and hence they do not even try paying it.
Trier: Those who try to follow the rules but cannot for want for knowledge and / or skills
Supporter: Those who want to follow the rules and follow them[/box]