No More Dodging: UP Government Cracks Down on Brick Kilns with New GST Rules:

The Uttar Pradesh government is tightening its grip on the state's brick kiln industry with a major overhaul of the GST system, aimed at curbing widespread tax evasion. A new seasonal tax payment plan is being rolled out, and a special investigation has been launched to ensure every brick is accounted for.

For years, the State GST department has suspected that many brick kiln owners are not paying their fair share of taxes. Since the brick-making business is seasonal—typically running from late autumn to the start of the monsoon—the previous system of monthly GST payments was seen as inefficient and easy to manipulate.

A New 'Seasonal' Approach to Tax

Under the new rules, the government is getting rid of the monthly GST filing requirement for brick kiln owners. Instead, they will now be required to pay their taxes on a seasonal basis. This makes practical sense, as it aligns the tax payment schedule with the actual business cycle of the kilns.

The primary goal is to make the system simpler and more transparent, both for the business owners and for the tax authorities.

Investigation Launched to Uncover Tax Evasion

But this isn't just a simple change in the payment schedule. The government has also ordered a comprehensive investigation into the industry. The State GST department is now actively collecting data to cross-verify the amount of tax being paid with the actual production of bricks.

Tax officials have been instructed to gather information on key production inputs, such as the amount of coal purchased by each kiln. By analyzing how much coal a kiln uses, authorities can create a fairly accurate estimate of how many bricks it produced. This production data will then be compared with the GST declarations made by the owners. If there's a major mismatch, it will be a clear red flag for tax evasion.

This two-pronged approach a simplified, seasonal tax system combined with a data-driven investigationsends a strong message to the industry: the days of under-reporting production and evading taxes are coming to an end. The government is determined to plug the leaks in the system and ensure that everyone pays their due.