Hyderabad sees tax revenue surge as strict measures combat fraud. Expert insights reveal strategies to sustain growth and compliance. known for its bustling commercial activity, Hyderabad is witnessing a remarkable surge in tax revenue and GST collections within the commercial tax department. This upturn is attributed to a series of proactive measures implemented by the department, including tighter scrutiny of e-waybills and enhanced filing of returns.
Of particular note is the timing of this development, as it follows the cessation of reimbursement for GST revenue shortfalls by the Centre to the states. Last year marked the conclusion of a five-year period during which the Centre compensated states for revenue losses.
In this landscape, Telangana stands out among its peers, with its GST revenue escalating from ₹4,424 crore in 2023 to an impressive ₹5,211 crore in 2024. This robust 18% growth ranks second only to Karnataka’s 19 per cent among the southern states. Contrastingly, Andhra Pradesh, Tamil Nadu, and Kerala reported growth rates of 3, 11, and 16%, respectively, during the same period, while the national average stood at 14%.
Notably, compliance with return filing deadlines has seen a significant uptick, rising from 70 per cent to 80%, underscoring a commitment to regulatory adherence. Similarly, the issuance of e-waybills has surged from ₹33 lakh to ₹39 lakh, indicating a buoyant economic activity.
To combat fraudulent practices, such as bogus input tax credit claims, the department is implementing a two-tier verification process for refunds, aiming to curtail financial misconduct. Recent crackdowns, including uncovering a ₹70 crore scam involving e-bike and talcum powder manufacturers, underscore the department’s vigilance.
Moreover, heightened scrutiny is being applied to sectors prone to evasion, such as the iron and steel industry, with the film industry also under scrutiny for lax filing practices among producers.
Addressing revenue leakage concerns, the department has initiated measures to stem losses incurred due to higher petrol and diesel prices in Telangana. By issuing waybills for petroleum products and liquor on a monthly basis, revenue streams have been fortified, bolstering the department’s financial stability.
In tandem with these efforts, GST audits targeting sectors with rampant evasion, coupled with stringent enforcement measures such as sudden vehicle inspections, are enhancing compliance levels and revenue integrity.
With a dedicated dashboard deployed to identify tax frauds and streamline enforcement activities, Hyderabad’s commercial tax department is poised to sustain its momentum and ensure fiscal prudence in the face of evolving economic dynamics.
Vakilsearch applauds the department’s crackdown on fraudulent practices, exemplified by recent discoveries of scams and intensified scrutiny on sectors prone to evasion. Measures such as two-tier verification for refunds and monthly waybill issuance for key sectors demonstrate a proactive approach to revenue protection. For easy GST filing get in touch with our experts today.
