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GST revamp: Group of state finance ministers for steps to eliminate fake input tax credit claims

GST revamp: Group of state finance ministers for steps to eliminate fake input tax credit claims

GoM decided to benefit from international experiences to improve compliance and reporting of B2C supplies, the official said. It was recognised that in order to improve analytics there is a need to take proper feedback from tax administrations to enable adequate learning by the systems in the place.

The members of the GoM also agreed to have suitable checks and balances to tackle menace of fake invoicing so as to regulate input tax credit outflows. Central tax authorities had booked about 8,000 cases involving fake ITC of over Rs 35,000 crore in FY21. While misuse of the beneficial provision of ITC under GST regime was the most common mode of evasion under the GST law, the scale if this was worrisome, the government had stated earlier.

The GoM also decided to call for inputs and suggestions from states on various GST system-related issues. The group has instructed the officers to examine the suggestions and present its analysis along with recommendations before the GoM within a period of one month, the official added.

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