UT checks petrol pump sales to plug VAT leakages

Deepak.Yadav@timesofindia.comChandigarh: Petrol pumps across the city have come under the scanner of the Chandigarh administration, with the excise department initiating a data-matching exercise to check possible VAT evasion.The department has issued demi-official (DO) letters to major oil marketing companies — Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — seeking detailed records of fuel sales to retail outlets in Chandigarh.Officials said the move is part of a broader strategy to strengthen VAT collection in the 2026-27 financial year. Data provided by oil companies will be cross-verified with the turnover declared by petrol pumps in returns filed under the Motor Spirit Tax Act.“Both oil companies and fuel stations maintain detailed sales records. By matching these datasets, discrepancies, if any, can be identified and action taken,” an official said.VAT from fuel sales remains a key source of revenue for the UT administration, making accurate reporting critical. Authorities believe that any mismatch between procurement and reported sales may point to tax leakage.At the same time, officials acknowledged a gradual shift in consumption patterns due to the rising adoption of electric vehicles (EVs). Incentives offered by the govt have encouraged buyers to opt for EVs, which may be contributing to a dip in petrol and diesel consumption.“While EV numbers are still relatively small compared to conventional vehicles, there are early indications that fuel demand could be getting affected,” an official added.The administration is also expanding its enforcement strategy beyond fuel sales, with multiple initiatives planned to improve compliance across sectors.Box: VAT Revenue TrendsVAT collection: Rs 563 crore (2024–25)VAT collection: Rs 586 crore (2025–26)Target for 2026-27: Rs 613 croreRevenue collected in April 2026: Rs 43 croreBox: Steps to boost VAT collectionAnalysis-based inspections using BIFA, Prime, GST Boweb and EWB portalsDaily roadside checking rosters to deter tax evasionSurveys of eating outlets to compare footfall with declared turnoverMeasures to improve monthly return filing compliance under GST and VATData sharing with excise branch to verify liquor resale turnoverBox: Vehicle Registration TrendsDecline observed in petrol and diesel vehicle registrationsRise in EV and hybrid vehicle registrations in recent yearsSelected Data:LMV Petrol: 14,947 (2022) → 16,697 (2023) → 10,303 (2024) → 7,964 (2025*)Diesel: 7,922 (2022) → 6,510 (2023) → 3,895 (2024) → 3,547 (2025*)LMV EV: 254 (2022) → 1,013 (2023) → 1,326 (2024) → 1,030 (2025*)2W EV: 752 (2022) → 2,103 (2023) → 1,752 (2024) → 1,216 (2025*)(*Data for 2025 till October)