GST - Input Tax Credit Fraud
It is seen in the recent news items about GST Input Tax Credit frauds so frequently. They are running into crores. When the common people are paying for each and every purchase, which includes daily essentials too, how these frauds are taking place and ministry concerned just informing after fraud. it seems some experts are creating non existing companies and GST numbers & showing invoices and payment of GST. Then cleverly claiming input refund. It seems there is a lacunae in the system of payment or refund of tax credit.
I suggest no input credit to be refunded unless the invoice creator deposit the same in the Govt. Tax account. This step, I hope will completely eliminate loss to the Govt., and there by saves public money. In this system, the fraudster realizes the amounts only upon payment received by Tax dept., I.e. only after payment by one party.
I am not a tax expert, but a suggestion come across to my mind after seeing such news many a times in papers. more
I suggest no input credit to be refunded unless the invoice creator deposit the same in the Govt. Tax account. This step, I hope will completely eliminate loss to the Govt., and there by saves public money. In this system, the fraudster realizes the amounts only upon payment received by Tax dept., I.e. only after payment by one party.
I am not a tax expert, but a suggestion come across to my mind after seeing such news many a times in papers. more
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Smart Babus in Finance Ministry designed GST System with Loop Hole of Input Tax Credit which is creating increasing corruption and fraud. We have been requesting Government to modify GST System without Input Tax Credit. New GST Rates need to be worked out without Input Tax Credit. Restaurants are now paying GST @5% without input tax credit and system is working fine. Removal of Input Tax Credit provision will not only eliminate fraud but simplify compliance. We are prepared to offer our help to Government in devising new reasonable rates of GST to make it Good And Simple Tax as was the vision of our PM. more
Jul 10
Why GST council yet not decided to withdraw GST on HEALTH INSURANCE? Atleast for Senior Citizens health policy GST council should take early decision not to charge any GST on Senior Citizens Health policy as GST collection increase day by day, so there is no any shortfall chances for Govt. more
Jul 10
there are lot of loopholes which these people find and do it unless the charges are like he or she will have to go to jail etc it becomes very hard more
Jul 09
Input tax credit is allowed only after supplier has paid it .The problem is Indians have found ways and means to bypass this requirement for short term. Our system cannot find such crooks immediately. Added to this our gst bonus and police are also encouraging such crooks. The courts immediately grants bail and the crooks restart hawala business in dummy name India is a country which is entirely united inthe matter of corruption. A familiar babu shall accept bribes even if you speak hindi.a kashmir babu who hates india never hesitates to accept bribes from Indian tourists bribes unites all Indians. more
Jul 09
