Reported by Mrinal Banik
Agartala: Tripura has significant potential to enhance its Goods and Services Tax (GST) revenue through the rubber sector and rising economic activity, a senior Central Customs, GST and Central Excise official said on Tuesday, while stressing the need to facilitate trade and prevent revenue leakage.
Kul Prakash Singh, who is responsible for customs, GST and central excise administration across seven states of the North East, said the department was working with rubber manufacturers, traders and the Rubber Board to improve data exchange and strengthen tax compliance in the sector.
Speaking to reporters during his visit to Tripura, Singh said the state is the second-largest rubber producer after Kerala and that the sector had remained relatively unexplored from the perspective of the GST administration.
He said Kundan Yadav, who was recently posted as the state’s regular commissioner, had introduced systematic changes and trade-friendly measures since taking charge.
“I am satisfied with the progress made so far,” Singh said, referring to his interactions with departmental officials, State GST authorities and representatives of the Rubber Board.
He said the department was focusing on facilitating legitimate business activities while ensuring that potential revenue leakages were prevented.
Explaining the state’s GST revenue profile, Singh said a major share of the current collection came from works contract services associated with government projects undertaken by departments such as Public Works and Irrigation.
Rubber-related manufacturing, trading and dealership activities offered another avenue for revenue growth, he said, adding that industrial expansion and increased economic activity would further strengthen the state’s revenue base.
Singh also explained that GST was a consumption-based tax and that revenue depended not only on manufacturing but also on the consumption of goods and services within a state.
On enforcement, Singh said the GST framework had moved away from immediate arrests in tax evasion cases, with greater emphasis on recovery proceedings and prosecution through prescribed legal procedures.
He said the earlier provision allowed prosecution in cases involving evasion of Rs 1 crore or more, but the threshold had subsequently been raised to Rs 5 crore. He added that prosecution would follow the issuance of a show-cause notice and confirmation of the tax demand, with courts deciding the punishment.
Referring to Tripura’s geographical location and its international border with Bangladesh, Singh said the state’s undulating terrain, forests and rivers pose challenges for preventive enforcement.
He said the department, along with other agencies, was monitoring attempts at cross-border smuggling involving narcotics, gold, cattle and commercial goods, including areca nuts and cumin seeds.
Appealing to the business community, Singh urged traders to pay their tax dues honestly and contribute to the development of Tripura and the country. He assured them that they could approach senior departmental officials, including the commissioner and additional commissioner, if they faced harassment by any officer.
On the proposed operationalisation of a related cross-border arrangement, Singh said the date would be decided by the Union government in consultation with Bangladesh and that he did not have a confirmed timeline.
He also said he was reviewing the functioning of the department in Tripura as part of his visit to all seven states under his charge.