scorecardresearch
Follow Us:
Wednesday, November 25, 2020

GST Council law panel to take up steps to curb fake invoices

The measures, which would help in plugging revenue leakages and boost GST revenues, will be discussed in a meeting of the law committee of the GST Council on Wednesday.

By: ENS Economic Bureau | New Delhi | November 18, 2020 1:28:11 am
There are about 6 lakh dormant registrants in GST.

Provisions related to registrations including deemed registrations are likely to be tightened as the government looks at curbing rising cases of fake invoices under the Goods and Services Tax (GST) regime. The measures, which would help in plugging revenue leakages and boost GST revenues, will be discussed in a meeting of the law committee of the GST Council on Wednesday.

Finance Ministry sources said that businesses, whose owners or promoters do not have commensurate financial track record, like filing of income tax returns and payment of income tax to the government, may undergo detailed physical and financial verification by tax officers, before their companies can be considered for GST registration.

The committee, comprising senior central and state tax officers, would also discuss the GST fake invoice frauds, further tightening of the GST registration process and work out other legal measures including necessary law amendment required in the GST Act to curb the menace of fake invoicing, Finance Ministry sources said.

“Data analytics techniques will be used to identify such taxpayers, who are suspected to be indulging in fraudulent activities and a coordinated action is likely to be taken against such elements by suspending their registration, followed by detailed physical and financial verification by field officers to check genuineness of their operations, before they are allowed to reuse their registration,” a source said.

Revenue shortfall: Telangana picks govt’s borrowing option

Telangana has accepted the Centre’s proposal (Option 1) to meet Goods and Services Tax (GST) revenue shortfall through borrowing and will get Rs 2,380 crore via the special window facilitated by the Finance Ministry.

The state has now joined 22 other states and 3 Union Territories (Delhi, Jammu & Kashmir and Puducherry) who have chose Option 1. Kerala, Punjab, West Bengal, Chhattisgarh, Jharkhand are yet to opt for the borrowing plan, saying the Centre should borrow the entire Rs 1.83 lakh crore shortfall.

The Centre has already borrowed Rs 18,000 crore on behalf of the states in three tranches on October 23, November 2 and November 9.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

Advertisement
Advertisement
Advertisement
Advertisement