Finance Ministry is considering more measures to curb the malice of fake invoices under Goods & Services Tax (GST). Tax sleuths have unearthed around 60 bogus firms recently in the National Capital Region alone involved in issuance of fake invoices over ₹800 crore.
As per Section 132 of CGST Act 2017, issuance of an invoice or bill without supply of goods or services and wrongful availing or utilization of Input Tax Credit is a cognizable and non-bailable offence if the amount is over ₹5 crore. The law prescribes a registered person to declare his supply in return form, GSTR 1 and accordingly pay his tax liability with the filing of return form GSTR 3B. This helps the recipient to avail input tax credit (ITC) on supplies declared by his suppliers in their GSTR-1 and in respect of which tax has been paid.
Move to curb fake invoices
The latest move to curb the menace of fake invoices was implemented from January 1 this year, when it was said that if a monthly filer has not filed the GSTR-3B for the preceding month, then such a taxpayer will not be allowed to file the GSTR-1 for the subsequent month, till the GSTR-3B for the preceding month is filed. For monthly fliers, GSTR 1 and GSTR 3B for the previous months need to be filed by the 11th and 20th day of successive months.
Now, the indication is that the effort is to initiate the action within the month itself, i.e., after due date for GSTR 3B is over. This indication was given by Revenue Secretary Tarun Bajaj in a press conference recently when he was responding to question in curbing fake invoices. He signaled that after measure to block sequential filing, work is in progress to act much faster and details of that action will be presented soon.
Source: thehindubusinessline.com
***
Don’t miss the next Tax Update / Article / Judicial pronouncement
Subscribe to our newsletter for FREE to stay updated on GST Law
Resolve your GST queries from national level experts on GST free of cost.
TW Editorial Team comprises of team of experienced Chartered Accountants and Advocates devoted to spread the knowledge of GST amongst the various stakeholders.
