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The Input Tax Credit is a big nuisance, without any value and must be totally withdrawn.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 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

    • Cluelessness abound

      The leaders of the Govt, the babus of the Govt are very clueless LocalCircles and we have not done enough to wake up these people. Read below: 5% GST on COVID vaccine. 28% GST...

      By Sudesh Rai
    • Buying a suv in India is 50% giving tax

      What's the most taxed product in India? It's not cigarettes, a can of aerated beverage or a bottle of whisky or beer. It's an AUTOMOBILE. It attracts the highest GST rate of 28% & a cess o...

      By Sunita Varghese
    • Request for cancellation of GST registration pending since November 2020

      I had submitted request for cancellation of registration on 11th November 20 using GST portal. The local officer sent me a notice suggesting change in the date of cancellation. I filed clarificatio...

      By Shrikant Kulkarni
    • Tax Contributions

      Biggest myth in India is that the country survives & flourishes ONLY on Middle Class income tax. The fact is that largest revenue generation in India is done thru GST & corporate tax ~ 59%....

      By Sudesh Rai
    • Issue Press Release and Publish Photos of corrupt CBIC and CBDT Officers.

      Several CBIC and CBDT officers, which should be renamed as Central Board of Direct Rxtortion have been publishing names of CAs and their involvement in fake credit. Wheras all cityzens appreciates ...

    • GST myths versus facts

      Issued by GOI today attached

      By Naina Mittal
    • GST on online music class

      I plan to start online music classes that will be delivered by prerecorded videos. My turnover will be below the limit of 20 lacs/annum. Do i need to register for GST. Appreciate your input on this...

      By Ram N
    • Garbage burning rampant in Noida

      these are the pics from Noida Sector 120 where garbage is being dumped and burnt by some miscreants and a friend sent thes. This is happening from past 1 month and nothing has been done to stop thi...

      By Sudesh Rai
    • Verify suppliers GST friends

      Whether u are taking services at a personal level or for your business, verify the vendors gst. There is still many vendors who give a gst invoice (generally non printer one) which has a gst number...

      By Sudesh Rai
    • GST should be applicable only when builder pay commssion to real estate consultants.

      Gst should be only applicable to Real estate consultant only when the builders pay commssion to associate. It is big problem for real estate consultants to submit bill and pay gst in advance witho...

      By Anonymous Circle member
    • GST Cancellation and Company Registration No

      If I cancel my GST no, will I have to surrender my company's registration no as well?

      By Neeru Sood
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.)