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I-T Dept. to crack down on GST fraud
Why is it in news?
- The government has roped in the Income Tax Department to tap illicit incomes as part of a crackdown against 7,000 fraud companies.
Details:
- Government is tightening its grip around fraudsters rigging the Goods and Services Tax (GST) regime.
- Government is using data analytics and information from agencies to crack down on fraud companies.
- The government netted a record GST collection of Rs 1.15 lakh crore in December 2020, helped by the action against tax evaders.
- Government had unearthed a rampant fake invoicing scam to evade goods and services tax (GST).
- The Central Board of Indirect Taxes and Customs (CBIC) then amended rules making it mandatory for businesses with monthly turnover of over Rs 50 lakh to pay at least 1 per cent of their GST liability in cash from January 1.
E-invoice:
- As per official statement, e-invoice would be made mandatory for all B2B transactions by businesses with turnover of over Rs 5 crore, from April 1.
- Electronic invoice was made mandatory for B2B transactions by businesses with turnover over Rs 500 crore from October 1,2020.