GST FRAUD of Rs. 920 Crore due to Input Tax Credit
Rs.400 Crore GST Fraud, 4 held
Times of India, November 13, 2020
2 Directors of Pvt Firms arrested in Rs.520 Crore GST Fraud
Investigators found that the two arrested accused had fraudulently issued as well as received bogus invoices without any actual supply or receipt of goods and services.
This is just the tip of the ice burg. For Rs. One Lakh Crore collected by government the Input Tax Credit (ITC) claimed is Rs.4 Lakh Crore. This loophole in GST Act of Input Tax Credit has provided golden opportunity to fraudsters.
We have been requesting government to remove the provision of ITC and reduce and rationalize GST rates.
We have suggested following rates:
0% for exempted goods and services
5% for all remaining goods and services
15% for Luxury goods and services.
This proposal if accepted and implemented by government will make compliance of GST very much simpler. The need to match invoices for determining ITC will not be there. The number of returns to be file today will be replaced by a single quarterly return showing turn over and GST deposited in treasury.
The need to approach Advance Ruling Authority and Courts for classification will not be there.
Thus GST will become Good and Simple Tax in true sense as was intended and announced by PM. more