GST Frauds of Rs.45000 Crores
Times of India, 29 August 2019
WB FM calls for tough steps to fix GST frauds
Estimates Scam Size At Over ₹45K Crore
West Bengal FM Amit Mitra has expressed deep concern over the cases of GST frauds and has shot off a letter to Union FM Nirmala Sitharaman, calling for putting in place a robust reporting system to generate real time tax alerts on detection of any suspicious and fraudulent transactions.
“I am shocked and deeply worried to learn about the massive fraud taking place under the GST structure today,” Mitra said in his letter, citing the reply in Rajya Sabha by minister of state for finance Anurag Thakur, who estimated the amount to be Rs 45,682 crore since the rollout of the tax reform measure on July 1, 2017.
“In fact, this massive fraud under GST is understated, as complete data of frauds under SGST have not been factored in. If the detected and undetected cases of tax fraud of all states under SGST are compiled, then the tax evasion figure may cross Rs 1 lakh crore,” Mitra said.
In view of massive fraud GST Council should consider removing the provision of ITC.
ITC was introduced as an incentive to ensure maximum registration of companies under GST. Large companies persuaded their supply chain partners to register to enjoy benefit of ITC.
However since the provision of ITC is being used for tax evasion we request Local Circles to take up the issue of removing this provision from GST Act. At he same time there is need to reduce the GST rates on inputs to ensure the total burden on end consumer is reasonable. more
WB FM calls for tough steps to fix GST frauds
Estimates Scam Size At Over ₹45K Crore
West Bengal FM Amit Mitra has expressed deep concern over the cases of GST frauds and has shot off a letter to Union FM Nirmala Sitharaman, calling for putting in place a robust reporting system to generate real time tax alerts on detection of any suspicious and fraudulent transactions.
“I am shocked and deeply worried to learn about the massive fraud taking place under the GST structure today,” Mitra said in his letter, citing the reply in Rajya Sabha by minister of state for finance Anurag Thakur, who estimated the amount to be Rs 45,682 crore since the rollout of the tax reform measure on July 1, 2017.
“In fact, this massive fraud under GST is understated, as complete data of frauds under SGST have not been factored in. If the detected and undetected cases of tax fraud of all states under SGST are compiled, then the tax evasion figure may cross Rs 1 lakh crore,” Mitra said.
In view of massive fraud GST Council should consider removing the provision of ITC.
ITC was introduced as an incentive to ensure maximum registration of companies under GST. Large companies persuaded their supply chain partners to register to enjoy benefit of ITC.
However since the provision of ITC is being used for tax evasion we request Local Circles to take up the issue of removing this provision from GST Act. At he same time there is need to reduce the GST rates on inputs to ensure the total burden on end consumer is reasonable. more
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View all 28 comments Below 28 comments
New form of making corruption easy. That's why diverting attention basic issues so that people should be not aware of actual things taking place in the country. What is the status of health services, school education, employment, farmers and their issue, small business enterprises, etc. more
Sep 02
Our system only acknowledges Corruption and acts like a tiger without tooth, do not prosecute perpetrators so that they will be an example for all. Ads somebody said there is no 100% fool proof system in this earth... Anyway our GST system does not help in any way to the burgeoning middle class...GST is not collected as per rules and on somethings need to be removed further... more
Aug 31
Laws of Prosecuting Corruption and Fiscal Frauds SHALL BE FAST REGULATED more
Aug 31
State FM is also member of GST committee and should inform every one in the meeting the ways in which frauds take place and what are the ways to stop this. All State FMs are aware the systems of modvate and other taxes where were the chances of frauds and steps to taken to stop the fraud. more
Aug 31
I totally agree with Mr.Arijit Ghosh that "No system could be 100percent fool proof. Dishonest trader take the help of CAs to do this. Authority should impose exemplary penalty including imprisonment to both trader and Concerned CAs" (a)Secondly, GST is new system introduced in India. It will take at least 5 years to settle the genuine tax payer with the system. I remember Modvat system was introduced in India in 1987; it took 10 years to regularize the system. (b)Let it be any system the person doing malpractice, will continue with to the same, unless he is booked and penalized heavily and put behind the bar. © What was the history of west Bengal, as far as evasion of state govt./local body taxes, for pre GST regime, is an issue to be think over more
Aug 30
As system is robust, therefore figures are coming to surface. If GST payment is done directly into Govt. Bank account linked to GSTIN , then problem is automatically solved. more
Aug 30
