Input Tax Credit scams continue in GST
The Govt is behind on catching miscreants and must figure out a better way to track down input tax credit frauds.
One of the popular ways of generating fake invoices is setting up of fake companies to which businesses issue invoices for sales or by issuing invoices to companies within the group or known persons for sales. Issuing invoices allows them to claim input tax credit.
Companies have to file annual returns only by June 30, 2019 which then gets extended to November every year and these are likely to be taken up for scrutiny only by 2020 or 2021.
By then, many of these companies would have shut down or vanished.
We must suggest a way to the Govt because so far it seems to be struggling more
One of the popular ways of generating fake invoices is setting up of fake companies to which businesses issue invoices for sales or by issuing invoices to companies within the group or known persons for sales. Issuing invoices allows them to claim input tax credit.
Companies have to file annual returns only by June 30, 2019 which then gets extended to November every year and these are likely to be taken up for scrutiny only by 2020 or 2021.
By then, many of these companies would have shut down or vanished.
We must suggest a way to the Govt because so far it seems to be struggling more
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Once 2A matching is started all such fake will gone. For Election they are not doing strict vigilance. But finding them is far easy at click computers can provide list of Fraudsters. more
Apr 14
@ SUBHASH PARAKH Your last post is unclear, but perplexing . In case what you refer to, and your allegation of falsification of documentation (i.e.fake bills) is aginst the realtor, - NOT THE BUYER whom i have referred to as the ággrieved',- then that is all the more reason why the realtor has exposed himself to stringent legal action under the 'ánti-profiteering' Rule ! From my side, think have sufficiently clarified my views; have nothing more to add ! courtesy more
Apr 07
All should be caught and recover all money with big fine. Fear of punishment only help to stop illegal activity. more
Mar 25
Of course that is bound to so continue, unless and until every aggreived decides to take the 'unruly bull' by its horns. For inspiration, if so looking for, look up FEED -Input supplied thouugh the Post ON FB @https://www.facebook.com/swaminathanv3/posts/2109854962424112; and, within, > https://swaminathanv208.blogspot.com/…/gst-on-realty-supple… courtesy more
Mar 25
Where is the aggrieved party. The fellow has purchased fake bills paying only 2 percen for 18 percent GST. Do not hav esoft corner for such fraudsters. more
Apr 07
The aim of input tax credit was to ensure more and more traders register under GST. However government under estimated the ingenuity of businessmen. Therefore the solution is to remove input tax credit and reduce GST rates to ensure the end consumer is required to pay a reasonable amount of GST. To give an example if GST rate on Cement is 5% and GST rate on a residential flat in a building with OC is 5% then the total GST impact for a consumer will be 10%. more
Mar 25
