BHUBANESWAR: To tackle fake invoicing in GST regime, the Commissionerate of Central Tax and Goods and Services Tax has decided to carry out joint investigations. The investigations will be undertaken by the enforcement wing of State Tax Authority working under Commissioner of CT and GST, Odisha and Central Tax Authority.
The authority deals with GST on claims of Input Tax Credit (ITC) on the basis of fake GST invoices. The decision to conduct joint investigations was taken after Central Tax officials under the control of Director General of GST Intelligence (DGGI) arrested six persons responsible for issuance of fake GST invoices in the State.
“These cases are just the tip of the iceberg. There are a number of such cases in which unscrupulous traders have filed GST returns or claimed ITC by submitting fake invoices. The initiative will help curb forgery of invoices and increase revenue collections,” said a tax official.
Sources said evasion of GST could be pegged between one per cent and three per cent of the total revenue collection as several unscrupulous traders are engaged in issuing or receiving fake invoices without any supply or receipt of goods and are availing ITC on the basis of such fake invoices.
The Commissionerate has also decided to conduct post registration inquiry into all cases in respect of iron and steel traders by the registering authority within seven days of the grant of a registration certificate. In case of amendment of registration certificate to include trading of iron and steel, the registering authority will also inquire into the existence of the taxpayer and transactions made through e-waybills. The Central GST officials and their State counterparts are also looking at the use of data analytics from the GST network for variation in returns, e-waybills and at trends in various sectors to find out where such evasion is taking place.
Commissioner of CT and GST Bishnupada Sethi has urged DGP Dr RP Sharma to direct district police administration to provide police assistance during raids. “The enforcement wings will conduct an inspection to discourage and eliminate such fraudulent practices. Since most of such tax evaders are of a criminal bent of mind, police assistance is required during search, seizure and further legal action,” he wrote to DGP.