Govt finds GST evasion of Rs 40,000 cr in over a year through bogus invoicing: Report

 








As part of the All-India Enforcement Drive, the Central Board of Indirect Taxes and Customs (CBIC) has unearthed goods and services tax (GST) evasion of Rs 40,000 crore in over a year through bogus invoicing and false input tax credit claims.

The CBIC had conducted the initiative through the Directorate General of GST Intelligence (DGGI) and other GST units from November 9, 2020. "More than 5,700 cases, involving an amount of about Rs 40,000 crore, have been detected," The Economic Times reported, quoting a senior government official.
The government has introduced some key changes in the GST regime that will come into effect from January 1.

One of the key changes includes availing input tax credit after matching invoices. The GST system will now calculate input tax credit for each assessee based on returns filed by their supplier. The measures are aimed at tackling fraud, ensuring a better payment discipline, plugging loopholes in the system and protecting the customer.

At present, similar rules in the legislation are not being taken seriously by taxpayers on technical grounds, BusinessLine quoted Rajat Mohan of AMRG & Associates, as saying. As a result, non-compliance is being litigated in several high courts, he said.
However, the government is also taking steps to ensure that these were not in conflict with its ease of doing business initiative, the official said.

The new rules will not impact the ease of doing business initiative, say officials. "Most of these changes are aimed at plugging the misuse of input credit and are in the right direction," ET quoted Pratik Jain, Partner at Price Waterhouse & Co, as saying.

Large companies have implemented the system already and others will soon follow. However, a high volume of transactions will require the use of robust technology solutions, he said.

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