19 august 2024 : Exploiting a loophole in the law, 584 licensed immigration firms are evading paying the goods and services tax (GST) as there is no condition of mandatory GST registration for such companies.
This came to light after RTI activist Karanpreet Singh sought details from the GST Department regarding the GST numbers of immigration firms operating in Jalandhar district. Of the 1,348 registered immigration and travel agencies, 584 were operating without a GST number, revealed the RTI data.
Although there are 1,602 immigration and travel agencies listed on the Jalandhar administration’s website, 254 licences have been cancelled over the years for various violations. The count of the registered and operational firms now stands at 1,348.
While the administration and the police have taken steps to verify the licences of immigration firms, it’s alarming to note that having a GST number is not a mandatory requirement for obtaining a licence in Punjab.
According to sources, besides the lack of mandatory GST registration, there were other loopholes in the law. In fact, a firm could operate without a renewed licence, if it had been applied, but not issued within 90 days, said the sources.
Shanky Ahuja, a resident of Ambala who recently staged a protest outside an immigration firm in Jalandhar, alleged that the company he approached for a work visa to the UK demanded Rs 15 lakh, including Rs 8 lakh in cash. “I refused to pay in cash and transferred Rs 5 lakh via a bank. However, I was not given a receipt. Subsequently, the travel agent stopped responding to my calls, and the office was found shut,” he said. “The government must bring strict laws to regulate immigration firms,” he said.
Jalandhar Deputy Commissioner Himanshu Aggarwal said he had directed the authorities to crack down on immigration firms operating without licences and clear pendency. He said while a GST number was not required for issuing a licence, the GST Department was responsible for conducting raids and auditing accounts once licences were granted. “The administration is fully committed to assisting these efforts and detailed information about registered firms and those with suspended licences is available on the administration’s website,” he added.
Jalandhar Excise and Taxation Officer Ashok Bali said the department regularly inspected immigration businesses, and recently, numerous companies had been served notices. Regarding firms lacking a GST number, he said the department maintained relevant data and would take appropriate action.
