Govt blocks ₹40k crore GST claims on returns mismatch

Action Against 2K Entities For Alleged Fraud, Non-Filing
The Central Board of Indirect Taxes and Customs (CBIC) has frozen tax credits of around Rs 40,000 crore as the returns did not match, exposing alleged fraud by close to 2,000 entities, apart from cases where returns were not filed. Last week, the indirect tax wing of the revenue department blocked the credits within four hours, CBIC chairman John Joseph said at an event on Monday.
Companies are entitled to credits on tax paid on inputs in the production chain so that there is no cascading effect of taxes. But major discrepancies in returns and instances of a large number of frauds prompted the government to crack the whip.

We request government to remove root cause which allows such frauds i.e. Input Tax Credit. The intention to provide ITC was to prevent cascading of taxes, but in reality the benefit of ITC is not made available to end consumers by suppliers who are using ITC for profiteering.
Removing ITC will require GST rates to be lowered on inputs to ensure final GST burden on consumer is reasonable.
Removing ITC will make GST a Good and Simple Tax as was the intention expressed by PM. The frauds due to ITC will be avoided. Return Filing will become simple. There will be no need to do time consuming and cumbersome exercise of Invoice matching. more  

View all 19 comments Below 19 comments
We are provided income oriented Education like D-pharma, B-pharma, GNM, Bsc Nursing, M-Pharma, odisa Karnataka . MBBS out of India our middle class family are afford...any medicine shop propaiter D-pharma HS Sc Exam (NIOS) -full Guide -mail or call me 9800178056 amitava512@gmail.com more  
One more good step towards eliminating black money more  
all rebates must be removed. more  
Perhaps low one rate with no input credit may put an end to this misuse by corporates and there is wide spread under invoicing also more  
The government and professionals may be engaged to find out the reasons for noncompliance.Many business man engage brokers to do all tax works and accounts works and this causes all problems. more  
Post a Comment

Related Posts

    • Good Governance in a Democracy and Citizens' expectations

      India is a country with enormous Manpower resources and it took 1st place in the world surpassing China. India is said to be world's largest Democracy and growing economy. Even after o...

      By RAGHONADH DUTT P
      /
    • Real issues facing the Country since a long time

      The real issues faced by the country since a long time: 1. No growth in Per capita income but only growth in GDP 2. Huge income disparities among the Citizens, no efforts to minimise the ...

      By RAGHONADH DUTT P
      /
    • I am not Interfereing in ED procedure related to Arbind Kejriwal JI

      I have no intension to Interfere in any ED procedure, neither am I any patent supporter of any Political group which I have repeatedly written in various online and offline portals. I ha...

      By DEBOLINA MUKHERJEE
      /
    • In the context of Forthcoming Elections: Don't freeze Bank Account of any Political Group

      Taking on the Topic of freezing any bank account on the con-text of vote: Vote to me is like any other game, where some opposite minded political groups contest against each other, ...

      By DEBOLINA MUKHERJEE
      /
    • Senior Citizens Are Ignored by PM

      Headline in Economic Times 19th February 2024 “Niti Ayog Calls for Tax, Legal Reforms for Elderly”. What is surprising is that PM is Chairman of Niti Ayog but is probably not infor...

      By MOHIT PANDE
      /
    • Nari Shakti Vandan Bill

      This bill was passed by Loksabha and Rajyasabha recently. Many political parties are not happy as the implementing process may take around two years. What surprises me is that, why these poli...

      By MOHIT PANDE
      /
    • Need to Pass Women Quota Bill

      Women Quota Bill: The Long awaited women Quota Bill will be Tabled on September 20TH 2023. We women are no less, but we are still are very less in number in every Profession i...

      By DEBOLINA MUKHERJEE
      /
    • How Middle Class Has Suffered in Last 9 Years.

      Even though PM has been advocating SABKA SATH SABKA VIKAS SABKA VISHWAS, the reality is something else which he may not be even aware of. The Bureaucrats who are running the government have impleme...

      By MOHIT PANDE
      /
    • ORGAN Donation Rules

      As per news Government is considering changing Organ Donation Rules. I would like Govt. to consider the following suggestion: When a person meets with an accident and subsequently dies i...

      By MOHIT PANDE
      /
    • Woes of Senior Citizens

      Kill Senior Citizens 🙏🙏🙏🙏🙏🙏 Govt should kill all sr. citizens after the age of 65 because Govt is not ready to pay attention to these nation builders.This issue was raised in Parliament by Ho...

      By MOHIT PANDE
      /
    • Karnataka Election Result

      PM held roadshows and rallies in Karnataka requesting voters to vote for BJP. Unfortunately BJP lost. In my humble opinion the reasons for BJP losing are listed below: 1. Perhaps PM is not awa...

      By MOHIT PANDE
      /
Share
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)