The Goods and Services Tax (GST) Department of the Andaman & Nicobar Islands has stepped up its enforcement operations across the Union Territory following the rollout of GST 2.0, the updated framework of taxation and compliance norms. The move comes after it was observed that several business establishments were yet to align with the revised GST rates, exemptions, and documentation requirements despite repeated notifications and adequate transition time.
Under the supervision of the Commissioner (UTGST), dedicated enforcement teams have been conducting surprise inspections since September 22, 2025, in and around Sri Vijaya Puram and adjoining areas. These inspections form part of a sustained campaign to ensure that all registered business entities strictly follow the new GST provisions.
So far, 46 business units have been inspected to verify adherence to revised tax structures, billing formats, and display norms. During the inspections, officials identified several instances of non-compliance, including incorrect rate application, failure to display GST registration details, and issuing invoices in non-prescribed formats.
According to the Department, penalties have been imposed in accordance with the GST Act and Rules, amounting to a total recovery of ₹2.53 lakh from defaulting establishments. The Department noted that enforcement will continue in the coming weeks and will expand to cover other sectors and regions across the islands.
Officials said the objective of the drive is not punitive but corrective, to encourage voluntary compliance and strengthen transparency in the taxation ecosystem. The Department reiterated that adherence to GST norms ensures a fair market environment and prevents revenue leakage that can impact public development projects.
Business owners have been urged to review their billing systems, update GST rate applications, and ensure that invoices comply with the latest formats. The Department has clarified that continued failure to comply will attract stronger penalties, and where necessary, prosecution under relevant provisions of the GST law.
The Department has also invited citizens and traders to actively participate in maintaining a transparent tax environment by reporting GST-related irregularities or violations. A dedicated WhatsApp number (9595359698) has been made available for lodging complaints or seeking clarifications regarding GST rates and exemptions.
Officials said this enforcement initiative forms part of a larger national effort to strengthen the GST 2.0 framework, focusing on digital reporting, e-invoicing, and simplified return filing to reduce human interface and promote compliance through technology. In the Andaman & Nicobar Islands, where many small and medium businesses cater to tourism and retail sectors, the Department is also conducting awareness sessions to help traders adapt to the revised system.
The Administration emphasized that timely compliance benefits both businesses and consumers by ensuring uniform tax treatment and preventing price distortions. Officials added that compliance drives would remain periodic to maintain market discipline and transparency.
The GST Department’s intensified action under GST 2.0 represents a push toward better fiscal accountability and administrative transparency in the Islands. By enforcing regulations and promoting voluntary compliance, the Administration aims to strike a balance between enforcement and education, ensuring that businesses stay aligned with national tax reforms while consumers benefit from fair trade practices.
