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Finance Ministry to block ITC for entities caught using fake invoices

 Finance Ministry to block ITC for entities caught using fake invoices

In an effort to plug revenue leaks, the Central Goods & Services Tax (CGST) administration has started blocking input tax credit (ITC) for assessees who availed credit against fake invoices, or against invoices without the receipt of goods or services, or both. The move comes at a time when the Revenue Department has increased the collection target for January and February by Rs. 5,000 crore each. It aims to collect Rs. 3.55-lakh crore over the last three months of the current fiscal year. In the first nine months of FY20, the department collected over Rs. 9.08-lakh crore, against Rs. 8.71-lakh crore during the corresponding period last fiscal. Though there was an increase it did not meet the average monthly collection expectation of Rs. 1.10 lakh crore. Now, in effort to boost revenue, the Directorate General of GST Intelligence (DGGI), under the Finance Ministry, has dispatched a letter to all the 26 field formations urging them to make a list of entities that availed fake credit and block ITC for those located in their respective jurisdictions.

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