The Uttar Pradesh government has started a new exercise to increase the revenue growth of the Goods and Services Tax (GST) collection department.
The government has now decided to focus its attention on insurance companies on the lines of sectors like real estate and mining.
The State Tax Department has issued notices to all insurance companies registered under the State GST in Uttar Pradesh and sought answers to about 40 questions to verify whether they are depositing the entire GST collected from customers on premiums or not.
For the first time, the department has also set up a centre under a Joint Commissioner at its headquarters to investigate whether insurance companies are involved in tax-related complaints or are involved in any kind of irregularity, due to which the state treasury could be losing revenue.
“The insurance sector is an important part of the service economy. For the first time, we have set up an independent cell to monitor its GST compliance,” said M Devaraj, principal secretary, state tax department.
He said information is being sought from them based on certain specific questions so that their tax returns can be matched with business transactions.