Rampant GST evasion in service sector of India
These guys are providing services to companies like bajaj electricals and these companies shake hands regularly with ministers and top officers.
But they dont care to create tax compliance in their networks.
LocalCircles should govt to act against all major companies whose service providers still dont generate GST bills. more
The biggest loop hole is provision of Input Tax Credit which is 400% of GST collection. This indicates the magnitude of possible fraud.
Even now Government may consider levy of 5% on all goods and services without Input Tax Credit and make it compulsory for every supplier/service provider to register without linking it to turnover.
Luxury goods can be charged 15% GST and without input tax credit the total tax burden on end consumer may be 25 to 30%. more