Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

UNDER INVOICING

429 views

Save Share

Join Us Follow Us Add as Source

Muraleedharan P.V

24 Points Posted on 26 July 2020

what is the legal recourse in GST to prevent under invoicing

Replies (3)

Quick Summary

Under-invoicing is a significant issue within the GST framework, with taxpayers employing various methods to evade indirect taxes. The Goods and Services Tax (GST) council employs several strategies to combat this, including e-way bills and physical verification of goods during transit. Additionally, valuation rules are used to determine the correct taxable value, and data analysis of filed returns, particularly for goods, helps identify discrepancies. Enforcement drives have led to thousands of cases being filed, highlighting the authorities' commitment to tackling tax evasion.

Pankaj Goswami

CA-FINAL

194 Points Posted on 26 July 2020

1. E way bill and physical verification of good while in transit.
2. Valuable rule to how to determine taxable value.
3. Data anysis using return filed by taxpayers and than vendor mainly in case of good.

Muraleedharan P.V

24 Points Posted on 27 July 2020

Thank you

Vijayprakash P

776 Points Posted on 27 July 2020

The evasion has been rampant since GST rollout with various instances coming to the light of Taxpayers using ingenious methods to evade the indirect tax. There are mant modus operandi and are aggressively using technology and existing data-from E-Way bill and GST returns -to check evasion. CBIT and Customs (CBIC) started on enforcement drive and many tax evasion cases coming to the fore. Until November 2019, over 6000 cases were filed by the authorities showing the increasing enforcement action being taken.