GST Council: Please remove Root Cause of GST Frauds ITC

Headlines in Times of India in 2020
• 3 bizmen pull off Rs 2,300 crore GST fraud with fake invoices, held in Mumbai

• State GST Ludhiana arrests three for claiming forged ITC worth Rs 30 crore
• GST officers arrest alleged mastermind for creating 115 fake firms to avail Rs 50 crore ITC
• Punjab: Two more arrested in fake GST invoice scam

• Moradabad exporter arrested for Central GST fraud of Rs 28 crore,

• Hyderabad: GST Intelligence arrests CA for Rs 69 crore fake invoice fraud
• GST: Fake invoices worth Rs 10,000 crore unearthed

We hope GST Council will revoke Input Tax Credit and announce GST rates without ITC.

We suggest following GST rates without ITC;
a) 0% for exempted goods & services and for services which were exempt from Service Tax earlier e.g. Cooperative Housing Societies, TV Viewing, Clubs etc.
b) 5% for all goods & services
c) 15% for Luxury goods & services
d) 15% for Petrol & Diesel more

Helpful All GST Queries Answered Nov 26

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H.P. Gurg

It has been observed after few years of operation of GST that ITC facility has been misused by Business Community. In view of above ITC clause may be removed totally. And let us try. more

Dec 05

TATOBA DESAI (Ex Superintendent Central Excise)

(1) Yes, since the facility given is misused, it should be withdrawn and GST rates (without input credit) should be prescribed, as it was prior to 1985 in the case of Central Excise Duty. This input credit facility had created endless problem, misuse, litigations in the past. (2) After introduction of GST, Govt -state or central not taking coercive actions to detect culprits and to put them behind bars, in this situation the tax evaders are enjoying and finding new loopholes and modus operandi to avoid tax. (3) When we purchase goods from local market (Even the pharmacist) the seller not issue any GST invoice. Thus the creation of black money is still on. more

Nov 27

MOHIT PANDE

Thanks Sir more

Nov 28

Padam Law

It is typical of The Indian Business community to avoid paying taxes and make a quick buck. Unfortunately the legal system is such that such criminals can also get bail and avoid punishment by keeping things ging in courts or years together. more

Nov 26

Mihirkali Bhattacharya

If ITC Is not allowed then the entire tax load to be borne by consumer. Why? We maintain police force for keeping peace and discipline . That is the job of gst officer to catch the criminal. What for tax office will get their salary if they can not unearth the criminal . more

Nov 26

MOHIT PANDE

It is a misconception that tax burden will be high. Restaurants GST rate was reduced to 5% without ITC. GST rate on Cement is 28% as it is a Luxury or Sin good as per GST Council. If you buy cement for your personal use you are paying 28% GST, whereas what I have suggested is 5% GST on cement.
GST rates have to be reduced without ITC so that burden on end consumer is reasonable. more

Nov 27

Ashok Ashok (contributor)

looks like still there are loop holes for people to exploit.When nearly every month we have meetings on this and it is more than three years since this has been there it is surprisingly the GST council people have not addressed it by making it foolproof and going to the root cause of it and rectify the same since it is loss for the govt and make the laws simple for people to adhere to than create complications more

Nov 26

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