Remove Root Cause of Fraud – Input Tax Credit
News in Indian Express 7 October 2019
“Rs 700 crore GST fraud unearthed in Pune: GST Commissionerate
A press release issued by the headquarters, preventive wing Pune II of the Central GST Commissionerate, stated that two people have been arrested in this connection.
The Pune office of the Central GST Commissionerate has unearthed an alleged ‘Rs 700 crore racket’ that provided fraudulent GST invoices to companies to claim input credit.”
The frauds caught may be tip of the ice burg. Finance Ministry and GST Council need to take corrective action. The total amount of Input Tax Credit claimed is 400% of GST collected.
Request Local Circles to conduct a Poll on the issue of scrapping Input Tax Credit and reducing GST rates on inputs to ensure a reasonable tax burden on end consumer.
Scrapping of Input Tax Credit will make filing of Returns very simple and business friendly as invoice matching will not be needed. more
“Rs 700 crore GST fraud unearthed in Pune: GST Commissionerate
A press release issued by the headquarters, preventive wing Pune II of the Central GST Commissionerate, stated that two people have been arrested in this connection.
The Pune office of the Central GST Commissionerate has unearthed an alleged ‘Rs 700 crore racket’ that provided fraudulent GST invoices to companies to claim input credit.”
The frauds caught may be tip of the ice burg. Finance Ministry and GST Council need to take corrective action. The total amount of Input Tax Credit claimed is 400% of GST collected.
Request Local Circles to conduct a Poll on the issue of scrapping Input Tax Credit and reducing GST rates on inputs to ensure a reasonable tax burden on end consumer.
Scrapping of Input Tax Credit will make filing of Returns very simple and business friendly as invoice matching will not be needed. more
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Easy access to the redressal Forums as well as Authorities are still lacking. Builder Developer in real estate sector still curning money under the Pretext of GST and there is NO Check &/or actions, though it is well settled that under construction Projects costing Rs. 45 lacs/unit will attract only 1% GST and Projects costing above Rs. 45 lacs/unit will attract 5% GST. Factually, Builder developer are charging whooping 12% in some cases even 18% whthout any check and actions. more
Oct 19
In the question of charging gst to consumers, the question comes how to identify whether the buyer is consumer or the dealer? At times the big buyers will present as the dealer himself or the dealers again sell considerable amount of goods without issuing the bills to consumer, in such cases no GST at all at any stage. more
Oct 15
In what way scrapping of Input Tax Credit will benefit the consumers? Rather, the government should find out a permanent solution to the problem. However, such big frauds could take place only with the connivance of the corrupt government officials. Until decisive action is taken to eradicate corruptions, such big frauds will continue to take place in different areas. more
Oct 10
We should not be impetent. Experts in the administration may be relied upon. Any hurried action would results in infractuas. more
Oct 09
Yes. I have already proposed for abolition of Input tax credit long back along with reduction of GST rate which will benefit the govt., trade and public at large. The step will reduce evasion of tax. more
Oct 09
