NEIPDA alleges ₹50 Crore monthly tax evasion by oil marketing companies in Assam

Guwahati, Feb 8: The North East India Petroleum Dealers Association (NEIPDA), Greater Guwahati Unit (GGU), has accused oil marketing companies (OMCs) of evading Value Added Tax (VAT) on diesel sales, resulting in an estimated revenue loss of ₹50 crore per month for the Assam government.

Raising concerns over the alleged malpractice, NEIPDA warned that this tax evasion undermines state revenue and creates unfair competition for businesses adhering to tax regulations.

In a statement issued on Saturday, the association claimed that OMCs are diverting diesel sales from depots in Arunachal Pradesh, Nagaland, and Mizoram to bulk consumers in Assam. This tactic allegedly allows them to bypass Assam’s higher VAT rates, inflicting significant financial losses on the state.

As per a government notification dated June 2, 2023, Assam levies a 22.19% VAT on diesel, while neighboring states have lower rates—7% in Arunachal Pradesh, 10% in Mizoram, 10% (approx) in Meghalaya, 13% in Tripura, and 17.20% in Nagaland.

NEIPDA further alleged that OMCs have been issuing misleading invoices marked “A/R CST,” applying a lower sales tax rate to evade VAT inspections in Assam.

The association urged authorities to enforce strict VAT compliance to prevent revenue leaks and maintain fair market practices. They emphasized that such tax evasion undermines the government’s ability to invest in critical sectors like infrastructure, education, healthcare, and social welfare.

“The time has come for the Assam government to take stringent action against this unlawful practice and safeguard public revenue,” the statement said.

Read: Assam: No proposal for road construction in Barak Bhuban Wildlife Sanctuary, clarifies MoEF

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