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  

View all 22 comments Below 22 comments
The Input Tax Credit is a big nuisance, without any value and must be totally withdrawn.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  
The matter was long back suggested to abolish input tax credit to avoid wrong /fake input tax credit. more  
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 <support@localcirclesmail.com> 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  
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  
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  
Good suggestion. GST Act & rules were framed by Bureaucrats who have a very limited knowledge of how business is done. more  
Post a Comment

Related Posts

    • Expanding Tax Net - Sweet shops across India

      Most mid sweets/halwai shops of India are top tax evaders. They evade both gst and income tax on 95% of the sale they make. Will the members of this circle tell Government how to get the...

      By Amit Mishra
      /
    • CBI says GST officials taking cuts from transporters

      The Central Bureau of Investigation Monday told a Delhi court that there are various state GST officers who allegedly accept money collected from transporters through middlemen in exchange for not ...

      By Sudesh Rai
      /
    • Rule 36(4) of SGCT Rules 2017

      Can anybody explain Rule 36(4) of the GST Rules 2017 which restricts availment of credit to 120% now revised to 110% that deems credit claimed as inadmissable?

      By Ashish Agarwal
      /
    • ITC denial

      This is internal finance ministry communication. Does this mean ITC is being denied to meet targets?

      By Rohit Jain
      /
    • GST registrations getting cancelled

      Now the non-filing of Goods and Services Tax (GST) returns is leading to attachment of bank accounts or cancellation of registration and many are worried. According to the GST law, it i...

      By Vishal Khanna
      /
    • UNREGISTERED DEALER CRITERIA

      Who can do business as an unregistered dealer under GST. Thanks - Sailesh

      By SHAILESH RAO
      /
    • clarification

      I would like clarification, whether a fund collected annually ,and spent on the benificiaries;which amount to roughly Rs 50 to 60 lakhs for our regular get-togethers be subjected to GST authorities...

      By Vadakke Raman
      /
    • Bribery in GST

      I am getting reports that magnitude of bribery on gst related matters has gone up. The excuse given is “sir risk badh gaya hai” you need to pay more. There are man...

      By RN Chopra
      /
    • GST ON COMMERCIAL SPACE ON RENT

      Can someone please clarify is GST is to be paid by the Property owner for premises given on rent for commercial purpose? If yes, is the owner required to file for GST as regular or Composition deal...

      By SHAILESH RAO
      /
    • GST for aerated/energy drinks

      I recently downloaded the latest price list from Amway's newly launched website and was shocked to see all their energy drinks were charged @ 40% ( price list attached). Could someone please let me...

      By Neeru Sood
      /
Share
Enter your email & 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

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)