Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

GST Council panel for 2-pronged strategy to curb fake invoices.

Date: 23-11-2020
Subject: GST Council panel for 2-pronged strategy to curb fake invoices
New Delhi: The Law Committee of the GST Council has suggested a two-pronged strategy to tackle the issue of fake invoices, sources said.

According to people in the know, the panel has recommended that new or fresh registrations in GST may adopt an Aadhaar-like registration process under which new registration can be done online with live photo and use of biometrics with due verification of documents.

Such facilities can be provided at banks, post offices, and GST Seva Kendras (GSK), just like the Passport Seva Kendras or the Aadhaar Seva Kendras. The GSKs can work on the pattern of the Passport Seva Kendras to provide new registration facilities with required checks on fake registration.

According to sources, the Law Committee has suggested that a fresh registrant must go for compulsory physical verification and personal identification in case he or she opts for non-Aadhaar authentication-based registration process and does not have income tax return supported adequate financial capability.

In such a case, he or she may have to submit a recommendation letter by two taxpayers of adequate reliability.

Further, also, if on the basis of document supported credentials, a registrant or dealer falls in "trustworthy" category, then he or she can be given registration within seven working days.

If he or she is not in the "trustworthy" category, then conditional registration shall be given within 60 working days only after physical verification of the place of business wherein in such cases input tax credit to their buyers shall be allowed only after filing of their return and the dealers would be required to pay certain portion of their liability in cash instead of paying 100 per cent tax through ITC.

According to sources in the Department of Revenue, to weed out existing fake dealers from the GST system, the panel proposed full application of the Business Intelligence and Fraud Analytics (BIFA) tool for precise identification of riskier dealers based on the riskier input supply chain and outward supply chain, abnormal taxpayer behaviour in terms of ITC availment, tax payment for catching fake dealer and taking appropriate action, including enforcement.

It has suggested suspension of first lot of riskier traders and identification of such taxpayers on the basis of significant criterion including non-filing of return for six months, said sources, adding that the committee underlined that fact that there are about 6 lakh dormant registrants in GST.

It further proposed that no income tax credential be given if 99 per cent tax is paid through ITC. There were about 35,000 such dealers who were given registration in 2018-19 and 2019-20, having GST liability of more than Rs 50 lakh (yearly), and more than 99 per cent tax paid through ITC and have no credential in income tax (did not pay income tax even of Rs 1 lakh in last three years).

Sources said that in the Law Committee's opinion, once a dealer is suspended, he has to explain the discrepancy within the prescribed time limit for revocation of suspension.

The urgent need to work out certain modifications in the GST Rules is evident from the fact that within ten days of a nationwide drive against the GST fake invoice frauds, the DGGI and CGST Commissionerates have so far arrested 48 persons, including one woman and three chartered accountants, and have booked 648 cases besides identifying 2,385 entities, said people in the know.


Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help

What is New?

Date: 12-01-2021
Notification No. 02/2021 - Central Tax
Seeks to make amendment (2021) to CGST Rules, 2017.

Date: 11-01-2021
Trade Notice No. 37/2020-2021
Electronic Issuance of Preferential Certificate of Origin (CoO) for India’s Exports to UK under Generalised Scheme of Preferences (GSP)

Date: 08-01-2021
Public Notice No. 37/2015-2020-DGFT
Enlistment under Appendix 2E of M/s The All India Plastics Manufacturers’ Association (North Zone), Gurugram, Haryana - Authorized to issue Certificate of Origin (Non-Preferential) – reg.

Date: 07-01-2021
Notification No. 55/2015-2020-DGFT
Amendment in import policy and condition of items classified under Chapter 41 & 43 of ITC (HS), 2017, Schedule – I (Import Policy).

Date: 07-01-2021
Notification No.03/2021 - Customs (N.T.)
Exchange rate Notification No.03/2021-Cus (NT) dated 7.1.2021

Date: 06-01-2021
Notification No. 03/2021-Customs (N.T./CAA/DRI)
Appointment of CAA by Pr. DGRI

Date: 06-01-2021
Notification No. 1/2021 -Customs (ADD)
Seeks to further amend notification No. 2/2016-Customs (ADD) dated 28th Jan, 2016 to extend the levy of Anti-Dumping duty on Melamine originating in or exported from China PR, up to and inclusive of 28th Feb, 2021.

Date: 04-01-2021
Trade Notice No. 36/2020-21
Cyber fraud complaints from Indian Exporters - Trade Advisory reg

Date: 04-01-2021
Notification No. 02/2021-Customs (N.T./CAA/DRI)
Appointment of CAA by Pr. DGRI

Date: 04-01-2021
Notification No. 02/2021-Customs (N.T.)
To rescind the Customs (Advance Rulings) Rules 2002

Exim Guru Copyright © 1999-2021 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.


C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001