GST Fraud is rampant in India and since the last few months of 2020 alone, more than 3,000 cases of GST fraud have surfaced. In this article, Rubix Data Sciences Private Limited explains the modus operandi of InputTaxCredit fraud and explains the loopholes which fraudsters exploit to falsely claim input tax credit and evade GST.
The Govt has cracked down on GST Fraud since Nov 2020. Steps include Investigation of New Enrolees, Revocation & Suspension of #GSTIN and limiting input tax credit to 99% of output tax liability in the case of companies with a turnover of Rs 5 million or more, with the balance tax having to be paid in cash. The GST authorities have also deployed AI and DataAnalytics to unearth fraud more easily.
This could impact honest businesses too, if they are working with those who have evaded GST. Consignments could be blocked, they could lose input tax credit and their payment cycle could suffer. Businesses must take steps to ensure that they deal with vendors who are fully compliant with GST. Rubix explains how businesses can safeguard themselves in this article.
To read the full story, please click on this link: Decoding GST Evasion in India
Source: RUBIX Data Sciences