Page 9 - Banking Finance July 2019

GST UPDATE

GST

CGST cops nab 4 for fake GST racket
GST audit test to begin
Central GST officers of Kolkata North Commssionarate have recently busted a
from July
fake GST racket, where invoices were issued without ac-
India Inc. is all set to face the first
tual supply of goods. Police arrested four persons inclusive
test of their goods
of two chartered accountants and produced in the court
and services tax fil-
of CJM, Alipore. The CGST officers have found that the
ings, with the au-
racket was allegedly involved in issuing fake invoices worth
thorities preparing
Rs 721 crore and it had consequently caused a loss of Rs 98.7 crore to the gov-
to begin audits by picking up returns
ernment exchequer.
for risk-based assessment from July.
A government official remarked, Investigation led by the officers has revealed that the base of the organisation
“There is a direction that the audits was set up in the Burrabazar area and it kept contacts with some CAs. When
should begin in July.” some businessmen approached the CAs for fake invoices, they were directed to
the middlemen who charged a hefty commission to provide the invoices. The
This is the first time after GST was
racket also offered common people several financial benefits including interest-
introduced in July 2017 that GST re-
free loans in lieu of their KYC details. Afterwards, they used those details to set
turns and the accounts of companies
up fictitious companies in order to issue fake invoices.
will undergo scrutiny for compliance
levels and the positions they had
taken as to whether they had inter- GST Council to cut GST on electric vehicles
preted tax provisions in a right man- Minister of State for Finance, Anurag Thakur, has informed that the GST coun-
ner and paid tax or not. However, cil will consider reducing tax on electric vehicles that
the authorities have been called for are seen as more environment-friendly and the matter
adopting a moderate approach by is pending before it. "The matter has been placed be-
the tax experts during the reviews. fore the GST Council and will be considered. As of now,
It is necessary for the companies to it is pending before the council," Thakur said. He stated
file two returns by December 31, fol- that the number of tax filers has doubled under the GST,
lowing the financial year ended and it reveals that common people’s trust on the new tax regime has increased.
March. Though, the deadline for FY18
He added that several decisions were taken by the council since the Goods and
was extended to June 30, 2019. The
Services Tax implementation. The ministers said over 21 lakh returns were filed
returns are the GSTR9, or the annual
in a single day which indicates the new tax regime has become better with time
return, and GSTR9C, or the annual
after initial glitches. The tax collection in April-May this year had increased by
reconciliation statement of GST re-
over 8.5% compared to the corresponding period last year. He said that the total
turns with financial statements, cer-
direct tax in 2018-19 was Rs 11,37,685 crore against 10,02,037 in 2017-18. He
tified by a chartered accountant.
further added the direct tax-GDP ratio has risen to 5.98% from 5.86%.
BANKING FINANCE | JULY | 2019 | 9