GST Department calls for high level meeting, fraudulent ITC main focus
As per news headlines, GST Department has called for high level meeting wherein, curbing fraudulent ITC is the main focus of the government.
Recently government has made many development to ensure that misuse of ITC can be curbed. These development includes, 10% ITC rule, wherein blocking of GST credit and restriction of ITC to 10% of GSTR-2A will be done. Another rule has been introduced whereby taxman can block doubtful Input tax credit.
In this senario, this meeting can mean, that some serious action will be taken by the governement.
The Source of news is given below for referance:
Revenue Secretary calls high-level meeting; asks #GST Wing to aim at collecting Rs 1.15 lakh cr for each of next two month & Rs 1.25 lakh cr for the last month of FY20: Sources pic.twitter.com/1t8KA0A24y
— CNBC-TV18 (@CNBCTV18Live) January 17, 2020
As per one of the circular, attention is being given wherein credit will be blockedas per situation covered under Rule 86A(1)(a) of the CGST Rules, 2017 i.e. against fake invoices or against invoices without receipt of goods or services
or both.
Relevant extract reads as follows:
“Attention is drawn to the provisions of Rule 86A(1)(a) of the Central Goods and Service Tax Rules, 2017 which empowers the CGST officers to block input tax credit (ITC) under certain circumstances.
2. All the Zonal Chief Commissioners have the facility to block/unblock ITC availed in a situation covered under Rule 86A(1)(a) of the CGST Rules, 2017 i.e. against fake invoices or against invoices without receipt of goods or services or both, if such availers of credit are located in their jurisdiction. To implement this provision, all the CGST Zones are required to make a list, GSTN-wise of fake credit availers and block their ITC under Rule 86A(1)(a) for the entities located in their jurisdiction. If, however, there are certain entities which are located outside their jurisdiction, they should forward a list of such availers along with GSTN No. to the local office of the Pr.ADG / ADG DGGI, with a request to block credit of such GSTN immediately.”
Click here to read the complete circular
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