CBIC releases "Myths v. Facts" on CGST Notification issued on 22.12.2020 to curb GST Fake invoice frauds

Last updated: 24 December 2020

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The Central Board of Indirect Taxes and Customs (CBIC) has released a 'Myths v. Facts' document to address confusion surrounding a recent CGST notification aimed at combating fake invoice fraud. This notification, based on the GST Council's Law Committee recommendations, targets fraudsters who claim ineligible Input Tax Credit (ITC) through fake or transient firms. The CBIC has already taken significant action, booking thousands of cases and arresting hundreds of individuals involved in ITC fraud.

In order to curb the GST fake invoice frauds, the Govt on the recommendations of the GST Councils Law Committee has issued a notification to deal with the menace of fraudsters who avail pass on ineligible ITC by fake or fly-by-night firms. Addressing some myths around the same MYTHS VS FACTS In order to curb the GST fake invoice frauds the Government on the recommendations of the GST Councils Law Committee has issued notification to deal with the menace of fraudsters who avail and pass on

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FAQ :

The notification aims to curb GST fake invoice frauds by dealing with fraudsters who avail and pass on ineligible Input Tax Credit (ITC) through fake or fly-by-night firms.

Yes, the CBIC has booked about 12,000 cases of ITC fraud and arrested 365 people so far. In the last six weeks alone, over 165 fraudsters have been arrested.

No, GST laws require that taxpayers are given a proper opportunity of being heard before registration is cancelled. Immediate suspension may occur in high-risk cases, but this can be revoked based on the taxpayer's representation.

No, cancellation or suspension is only taken up in fraudulent cases with significant discrepancies, not for mere clerical errors. Sophisticated tools are used to identify genuine fraudsters.

No, the changes are intended to target fraudsters precisely using data analytics, which will not impact the ease of doing business for genuine taxpayers. The aim is to provide a level playing field.

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