Cashew trade faces GST evasion concerns in district; revenue gap widens
Cashew nut trade in the district has come under scrutiny over alleged Goods and Services Tax (GST) evasion, with officials acknowledging a widening gap between expected and actual revenue collection.
Sources estimate that cashew transactions worth over ₹60 crore are carried out annually in the district. At the applicable 5 per cent GST rate, the State exchequer is expected to receive around ₹3 crore. However, actual collections are reported to be below ₹2 crore, raising concerns over compliance and enforcement.
The State GST department has circle offices in Anakapalle and Achyutapuram, covering a wide network of mandals. The Anakapalle circle includes Sabbavaram, Chodavaram, K. Kotapadu, Devarapalli, and Cheedikada, among others. The Achyutapuram circle spans Parawada, Kasimkota, Rambilli, Elamanchili, Nakkapalli, Narsipatnam, Rolugunta, and several other mandals.
Officials said cashew trade activity is largely concentrated in the Achyutapuram circle, particularly in Narsipatnam, Rolugunta, and Ravikamatham mandals, where cashew processing units are located. Traders and intermediaries procure cashew nuts directly from farmers and supply them to processing units.
As per norms, GST at 5 per cent is applicable on the value of cashew nuts purchased from farmers. However, allegations have surfaced that some traders are underreporting purchase volumes, reflecting only a portion of actual transactions in their books. Instances of traders operating without valid trade licences have also been reported.
There are also allegations that some traders are deducting GST from payments made to farmers at the time of procurement.
The issue has been attributed to limited field-level inspections and inadequate monitoring by enforcement officials, allowing irregular practices to persist and resulting in revenue leakage.
When contacted, Joint Commissioner Sheshadri said there are no specific targets for GST collection from cashew transactions. He added that GST is being collected from traders and assured that complaints regarding irregularities would be examined and action taken.