Quick Summary
The Goods and Services Tax authorities have unearthed over Rs 31,000 crore of tax fraud committed by misuse of input tax credit (ITC) provision under the Goods and Services Tax (GST) regime during the financial year 2020-21 and booked more than 7,200 cases involving fake ITC. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in Rajya Sabha today. Giving details, the Minister stated Input Tax Credit (ITC) fraud detected by CGST format
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FAQ :
The total value of Input Tax Credit (ITC) fraud detected in the financial year 2020-21 was over £31,233.40 crore.
More than 7,200 cases, specifically 7,268 cases, involving fake ITC were booked in FY 2020-21.
The details were revealed by the Union Minister of State for Finance, Shri Pankaj Chaudhary, in a written reply to a question in the Rajya Sabha.
The government has introduced AADHAR authentication for new registrations, allows verification of existing registrations, and has provisions to suspend or cancel registrations of fraudulent taxpayers. They also block furnishing of GSTR-1 if GSTR 3B returns are not filed and have made e-invoices mandatory for B2B transactions above £50 crore.
If a taxpayer has not filed their GSTR 3B returns for two consecutive periods, the generation of their e-way bill can be restricted. Furthermore, if 2 or more GSTR 3B returns are not filed, the furnishing of their outward supply statement in FORM GSTR-1 can be blocked.
ITC credit can be blocked under Rule 86A of the CGST Act, 2017, if the proper officer has reason to believe that ITC has been availed fraudulently.
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