CGST Act Needs to be Amended
Headlines in Times of India today:
“Nearly 25% of 69K suspected GST a/c fake”
Vanished after availing benefits of almost Rs.15K Crores, reveals Special Drive of CBIC.
We have been telling government that GST Act has a built in loop hole for frauds. This is known as INPUT TAX CREDIT (ITC). As per data published by CBIC the input tax credit claimed is 400% of GST collected. This gives an idea of how much fraud is allowed.
We have suggested through Local Circles that ITC should be abolished and new rates of GST should be announced. This was done for Restaurants and consumers are paying only 5% GST on their food bills. This shows it is possible to work out rates without ITC to ensure tax burden on end consumer is reasonable and affordable.
The GST system without ITC will make it Good and Simple Tax as was envisaged by our PM Shri Narendra Modi. It will also reduce compliance burden on GST Registered entities as number of Returns to be filed will reduce drastically.
We request Local Circles to take up this issue and conduct a Survey. more
“Nearly 25% of 69K suspected GST a/c fake”
Vanished after availing benefits of almost Rs.15K Crores, reveals Special Drive of CBIC.
We have been telling government that GST Act has a built in loop hole for frauds. This is known as INPUT TAX CREDIT (ITC). As per data published by CBIC the input tax credit claimed is 400% of GST collected. This gives an idea of how much fraud is allowed.
We have suggested through Local Circles that ITC should be abolished and new rates of GST should be announced. This was done for Restaurants and consumers are paying only 5% GST on their food bills. This shows it is possible to work out rates without ITC to ensure tax burden on end consumer is reasonable and affordable.
The GST system without ITC will make it Good and Simple Tax as was envisaged by our PM Shri Narendra Modi. It will also reduce compliance burden on GST Registered entities as number of Returns to be filed will reduce drastically.
We request Local Circles to take up this issue and conduct a Survey. more
Viewed by 356
Don't fully agree about all ITC being claimed is fraud. What about businesses who are purely into exports? They won't have output GST and therefore will only have input credits from local purchases. more
Jul 08
Please abolish ITC and make GST rates to suit it without ITC as it is done for standalone restaurants. more
Jul 07
There are loop holes in every govt revenue dept which the business people utilise to the fullest extent and it takes a long time for the govt to wake up to realise what is happening. more
Jul 07
Few setups openly deal in cash only which means they totally avoid GST and cannot be held more
Jul 07
They accept digital payments. But, say that if one pays cash, then no gst, with digital payments 18%gst.
And I presume businesses with revenue above a certain amount have to pay gst (I might be wrong). more
And I presume businesses with revenue above a certain amount have to pay gst (I might be wrong). more
Jul 07
And there are many who avoid GST. If digital payment, then 18% GST !!. So, customers are happy to pay cash. Catch the businesses and service providers who dodge gst. Setup an email id where citizens can send the details of such fraudsters. more
Jul 07
