PMO asks states to curb fake ITC claims – The Economic Times

A day after the GST Council set up a committee to identify measures to augment revenue from goods and services tax collection, the Centre Friday asked states to take steps to curb rising fake input tax credit claim cases.

The Prime Minister’s Office (PMO) on Friday took stock of the issues impacting revenue collection and asked states for increasing compliance and use data to nab evaders.

“States have been asked to take steps to be more vigilant of the fake input tax credit (ITCNSE 0.31 %) claims and take steps to improve compliance,” a government official, who attended the meeting, said.

A presentation on revenue collection, filing of returns and measures that can be taken was made by the revenue department at the meeting that was attended by state chief secretaries and principal GST commissioners via videconferencing.

Another official said the emphasis was on extensive use of data provided to the states, especially in cases that were being red flagged.

The government, which restricted ITC credit to 20% without invoices on Thursday, could further reduce it, said one of the officials quoted above. “It has been suggested that it should be further brought down,” the official said.

GST mop-up in September fell to 19-month low of Rs 91,916 crore.

via PMO asks states to curb fake ITC claims – The Economic Times

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s