Law Committee of GST Council to meet on November 18 to discuss fake invoices
An urgent meeting of the Law Committee of the Goods and Service Tax (GST) Council has been convened tomorrow, i.e. November 18, 2020
An urgent meeting of the Law Committee of the Goods and Service Tax (GST) Council has been convened tomorrow, i.e. November 18, 2020, in New Delhi to discuss in detail the issue of fake invoices to claim an input tax credit under the indirect tax regime.
The meet will deliberate on ways of further tightening of the GST registration process and work out other legal measures including necessary law amendment required in the GST Act to do away with the menace of fake invoicing.
This meeting is part of the nationwide drive against the GST fake invoice frauds under which in last four days Directorate General of GST Intelligence (DGGI) has arrested 25 persons including two professionals, identified about 1180 entities and booked 350 cases against unscrupulous elements involved in availing and passing on of ineligible input tax credit (ITC) fraudulently.
The fake invoices were not only issued for availing or passing on of the ITC but were also used as a conduit for nefarious activities leading to tax evasion, massive bank loan fraud, money laundering and hawala transactions.
Alarmed by a rise in fake invoice cases, the Centre and states on November 16 began deliberations to streamline the procedure for suspension of GST registration to make it more efficient and faster to check fraudsters.
The Law Committee of the GST Council, comprising senior central and state tax officers, discussed the issue of fake invoice frauds, further tightening of the GST registration process and other legal measures, including necessary amendments required in the GST Act, to curb the menace of fake invoicing, a finance ministry source told PTI.