The Delhi government has sent notices to 5584 companies under GSTR Act 3A for not filing tax returns and Value Added Tax (VAT) notices to 36 companies for not filing tax returns.

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In its release, the government said that it was working to increase revenue for development works and also anti-COVID measures.

"In this regard, the Delhi government has reviewed tax collection of the last quarter. During the review process, it was found that 10800 companies registered under GST have either paid no tax or paid lesser tax to the Delhi government in the last quarter," the release said, adding that action had been initiated against these companies.

According to Manish Sisodia, Deputy Chief Minister and Finance Minister, nine sectors--auto, electronics, e-commerce, insurance, pharma, financial services, consulting, security and healthcare--had not been affected by the COVID-19 pandemic.

Sisodia has written to the GST department that around 935 companies under these nine sectors have paid zero tax and 2017 companies have paid 50 percent tax. He said the Delhi government will "strictly" scrutinise the reasons behind not filing tax returns by these companies from unaffected sectors.

He has asked the companies to immediately deposit the taxes and warned of stringent action against the companies which failed to do so.

The extended time period granted for the filing of GST return for Q1 2020-21 got over in July 2020. The Delhi government is also identifying the taxpayers evading tax, the release said.