Boosting GST Compliance: A Campaign Overview

Abstract

The Goods and Services Tax (GST) regime, introduced in India in 2017, aimed to unify the nation’s indirect tax structure, promoting ease of doing business and enhancing tax compliance. Despite its benefits, segments of unregistered manufacturers and traders persist, often operating in cash-dominated sectors, which hampers the formal economy’s growth. In response, the Central Goods and Services Tax (CGST) Delhi East Commissionerate launched a GST Registration Campaign on 21st-22nd March 2025, targeting these unregistered entities to bolster compliance and integration into the formal tax system. ​Press Information Bureau

Introduction

The GST framework revolutionized India’s indirect taxation by consolidating multiple taxes into a single system, thereby reducing complexities and fostering a unified market. However, the transition to this system has encountered challenges, particularly in bringing all eligible businesses under its ambit. Unregistered businesses not only miss out on the advantages of formalization but also contribute to revenue leakages. Recognizing this, the CGST Delhi East Commissionerate initiated a proactive campaign to address these challenges.​

Campaign Overview

The two-day campaign focused on areas with a high concentration of unregistered businesses, including:​X (formerly Twitter)+2Press Information Bureau+2Press Information Bureau+2

• Hallan Chowk, Old Seelampur​
• Gole Baithak, Old Seelampur​Press Information Bureau+1X (formerly Twitter)+1
• Jacket Market of Jaffrabad​Press Information Bureau
• Subhash Road, Gandhi Nagar​
• New Seelampur​

GST Helpdesks were established at these locations to assist traders with queries and facilitate the registration process. The initiative received an encouraging response, with over 2,000 queries addressed and more than 100 fresh GST registration applications generated on the spot. ​Press Information Bureau

Role of Student Volunteers

A notable aspect of the campaign was the involvement of 200 students from reputed universities, designated as GST Ambassadors. These volunteers conducted door-to-door campaigns, distributing 7,500 pamphlets in Hindi and Urdu to educate traders about GST provisions. Their efforts were instrumental in bridging the information gap and encouraging voluntary compliance. ​Press Information Bureau

Educational Outreach

To further enhance awareness, the campaign incorporated public announcements, skits, street plays, and mohalla campaigns organized by the National School of Drama (NSD). These activities highlighted the importance of tax compliance and the consequences of non-compliance, making the information accessible and engaging for the target audience. ​Press Information Bureau

Legal Framework and Compliance

Under the GST Act, businesses exceeding the prescribed turnover threshold are mandated to register for GST. Non-compliance can lead to penalties, including fines and potential legal action. The campaign emphasized these legal obligations, clarifying that registration is not merely a procedural formality but a legal requirement essential for lawful business operations.​

Benefits of GST Registration

Beyond legal compliance, GST registration offers several advantages:​

• Input Tax Credit (ITC): Registered businesses can claim ITC on their purchases, reducing their overall tax liability.​
• Competitive Edge: Being part of the formal economy enhances credibility, attracting more customers and business opportunities.​
• Ease of Compliance: The GST regime’s digital infrastructure simplifies tax filing and compliance processes.​

Challenges and Solutions

Despite the campaign’s success, challenges persist:​Press Information Bureau

• Awareness Gaps: Some traders remain unaware of GST provisions or perceive the registration process as cumbersome.​Press Information Bureau
• Cash Transactions: The prevalence of cash transactions in certain sectors complicates the transition to a formal system.​

Addressing these challenges requires continuous educational initiatives, simplification of registration procedures, and fostering a culture of compliance.​

Conclusion

The CGST Delhi East Commissionerate’s campaign serves as a model for encouraging GST compliance among unregistered businesses. Such initiatives not only enhance tax revenues but also promote economic transparency and growth. Continuous efforts, including educational outreach and stakeholder engagement, are essential to integrate all eligible businesses into the GST framework, thereby strengthening India’s formal economy.​Press Information Bureau

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