Abolish Input Tax Credit system
Heading in Times of India 21 January 2020
“Trading firm director held in ₹10-crore GST scam
The Thane wing of the CGST arrested Vinit Agarwal, director of Hemraj Devkarandas Metals and Minerals Ltd, for availing Input Tax Credit to the tune of Rs 10 crore by submitting fake invoices. “
The Input tax Credit claimed is 400% of GST paid. This means there is a big opportunity to claim input tax credit through fake invoices. Only few cases of fraud are being caught. Many cases may not be caught due to corruption.
It is high time GST Council and Finance Ministry get the GST Act amended to abolish the Input Tax Credit system. The GST rates could be reduced for inputs used for manufacturing to ensure a reasonable GST burden on end consumer. The GST rate of 5% on Restaurants without input tax credit is working fine.
Removal of Input Tax credit will make GST a good and simple tax. The filing of multiple Returns and matching invoices to check input tax credit claimed, is a time consuming process, will be avoided. Expenses incurred on filing Returns through CAs will be reduced. Life of GST payer will become simple and easy. more
“Trading firm director held in ₹10-crore GST scam
The Thane wing of the CGST arrested Vinit Agarwal, director of Hemraj Devkarandas Metals and Minerals Ltd, for availing Input Tax Credit to the tune of Rs 10 crore by submitting fake invoices. “
The Input tax Credit claimed is 400% of GST paid. This means there is a big opportunity to claim input tax credit through fake invoices. Only few cases of fraud are being caught. Many cases may not be caught due to corruption.
It is high time GST Council and Finance Ministry get the GST Act amended to abolish the Input Tax Credit system. The GST rates could be reduced for inputs used for manufacturing to ensure a reasonable GST burden on end consumer. The GST rate of 5% on Restaurants without input tax credit is working fine.
Removal of Input Tax credit will make GST a good and simple tax. The filing of multiple Returns and matching invoices to check input tax credit claimed, is a time consuming process, will be avoided. Expenses incurred on filing Returns through CAs will be reduced. Life of GST payer will become simple and easy. more
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The Input Tax Credit is a big nuisance, without any value and must be totally withdrawn. It is a big source of corruption. LocalCircle must work for a composite appeal to the Government of India and the States on the issue. more
Jan 24
The matter was long back suggested to abolish input tax credit to avoid wrong /fake input tax credit. more
Jan 24
I am unable to Log In because it is not clear where to put the new PW, even the temporary PW. I am also unable to reach you on phone to explain the problem. Pls help me. G C Mathur Convenor-Trustee Treasurer, Binty ( A Voluntary Consumer Organisation) Regd. Office: H No 9-B/9, First FloorKishangarh, Vasant Kunj Post Office, New Delhi: 110070Tel: +91 11 26136232 M:9910338312.Email: gcmbinty@yahoo.com On Wednesday, January 22, 2020, 08:13:35 PM GMT+5:30, Vijay Saunshimath wrote: Vijay Saunshimath Vijay Saunshimath commented on the Post Vijay wrote: "ITC - Means Tum kahoo aur hum ko bhi khilaoo , ek do case kar denge aur ulja denge. And future fact - Common Man(employee) (Abhi pasina chaaat te hai future mai ..... sheet)" View/Comment Reply to this email to post a comment. more
Jan 23
ITC - Means Tum kahoo aur hum ko bhi khilaoo , ek do case kar denge aur ulja denge. And future fact - Common Man(employee) (Abhi pasina chaaat te hai future mai ..... sheet) more
Jan 22
Reduce IGST on imports or on inter-state transfer of goods to only 1% in order to identify these imports and transfers,and collect GST on their sales in order to avoid any ITC on such payment of IGST, this will reduce burden on traders or businessmen, also fake claim will be avoided. Govt. collection will increase. Ca S.K. Verma more
Jan 22
Good suggestion. GST Act & rules were framed by Bureaucrats who have a very limited knowledge of how business is done. more
Jan 23
