GST FRAUD of Rs. 920 Crore due to Input Tax Credit
Times of India, November 12, 2020
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
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
Viewed by 435
View all 8 comments Below 8 comments
I think the problem is not with the extent of punishment, but the fact that judiciary does not decide quickly enough. Far too many cases take years and years to come to a final conclusion, even when there is no doubt regarding the criminality. more
Nov 20
Punishments are not severe and are implemented in the fastest manner. I think we should have death sentences even in economic offences beyond a particular limit. Presently people are least scared of any offences. Hard core criminals must have death sentences in any type of offence. more
Nov 20
Not true Mr.Padam, we become chor only when there is no punishment due to above 3 reasons more
Nov 16
Trouble is 1= rules are lax 2= officers have doubtful honesty 3= Judiciary in inefficient. more
Nov 15
Sorry I dont agree at all, ITC has to be there as otherwise we shall have multiple taxation points, and shall go back to the old horrific regime of VAT GST short comings need to be corrected and I am sure in days to come we shall have a perfect GST system. Petroleum should be brought under GST at the earliest. more
Nov 14
