{"id":2762,"date":"2020-02-12T09:31:00","date_gmt":"2020-02-12T04:01:00","guid":{"rendered":"https:\/\/www.grainmart.in\/news\/?p=2762"},"modified":"2020-02-12T01:10:39","modified_gmt":"2020-02-11T19:40:39","slug":"gst-input-tax-and-refund-frauds-a-concern-cbic","status":"publish","type":"post","link":"https:\/\/www.grainmart.in\/news\/gst-input-tax-and-refund-frauds-a-concern-cbic\/","title":{"rendered":"GST Input Tax and Refund Frauds a Concern: CBIC"},"content":{"rendered":"\n<p>Fraudulent GST input tax credit claims and <a href=\"https:\/\/www.grainmart.in\/news\/government-to-take-action-against-gst-defaulters\/\">fake invoices<\/a> have become a headache not only for the tax administration but also for taxpayers. GST input and Refund frauds become a concern for <a href=\"http:\/\/cbic.gov.in\/\">CBIC<\/a>.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>CBIC Block Refunds<\/strong><\/h5>\n\n\n\n<p>The Central Board of Indirect Taxes and Customs (CBIC) have blocked GST input tax credit of more than 2000 companies. It has obstructed around Rs 40,000 crores in the name of fake invoices. The data authentication in the department reported a mismatch in filing and returns. Speaking at International Customs Day, CBIC chairman John Joseph, said that the action is in line with directives. Further, the department found cases of GST input credit demand by the buyer when the supplier has not uploaded any invoice. The move will help the government to reduce fake invoice claims.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Small Business Suffer<\/strong><\/h5>\n\n\n\n<p>The decision has disappointed small traders and exporters who have been expecting GST input tax credit. Further, the <a href=\"https:\/\/www.grainmart.in\/news\/gst-revenue-crosses-1-lakh-crore-in-november\/\">revenue <\/a>department linked its income tax return with the indirect tax return and put them under scrutiny. A senior CBIC official accused small traders and exporters of evading tax returns by faking invoices. The department has sent notices for tax discrepancy cases. However, small businesses stated that the officials have not screened documents properly. Further, they complained that though their turnover is large, their profit share remains small and they end up paying huge GST.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Reasons for Failure<\/strong><\/h5>\n\n\n\n<p>Administrative measures play an important role in checking tax evasion. The tax evasion has grown to a large extent since the GST roll out. Further, failure in technology assists evaders to cover the modus operandi. Also, the number of bogus firms is on a rise which claims GST input tax credit fraudulently. Several non-identifiable entities use random PAN numbers to claim GST input credit through fake invoices. Besides, there were some instances where exporters claimed huge cash refunds but paid a negligible amount of tax. In addition, there were several claims under the inverted duty structure where tax paid on GST input is greater than on the final output.<\/p>\n\n\n\n<p>In all, though the government initiated GST to unify\nthe country into a common market, tax evasion continues.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fraudulent input tax credit claims have become a headache for the tax administration. GST input tax and Refund frauds a concern for CBIC<\/p>\n","protected":false},"author":13,"featured_media":1800,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[10762,4605,7117,10763,284,10758,10759,3708,10760,10761,10764,3685],"class_list":["post-2762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-blocked-gst","tag-cbic","tag-central-board-of-indirect-taxes-and-customs","tag-fake-invoices","tag-fraud","tag-gst-fraud","tag-gst-input-tax-credit","tag-gst-refund","tag-gst-refund-fraud","tag-john-joseph","tag-mismatch","tag-tax-evasion"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GST Input Tax and Refund Frauds a Concern: CBIC - Grainmart News<\/title>\n<meta name=\"description\" content=\"Fraudulent input tax credit claims have become a headache for the tax administration. 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GST input tax and Refund frauds a concern for CBIC\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.grainmart.in\/news\/gst-input-tax-and-refund-frauds-a-concern-cbic\/\" \/>\n<meta property=\"og:site_name\" content=\"Grainmart News\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/grainmart.in\" \/>\n<meta property=\"article:published_time\" content=\"2020-02-12T04:01:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.grainmart.in\/news\/wp-content\/uploads\/2019\/12\/GST-df.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"798\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gurneel Kaur\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Grainmart1\" \/>\n<meta name=\"twitter:site\" content=\"@Grainmart1\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gurneel Kaur\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/gst-input-tax-and-refund-frauds-a-concern-cbic\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/gst-input-tax-and-refund-frauds-a-concern-cbic\\\/\"},\"author\":{\"name\":\"Gurneel Kaur\",\"@id\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/#\\\/schema\\\/person\\\/2207bccbf6af27486201b6b7db8c3b53\"},\"headline\":\"GST Input Tax and Refund Frauds a Concern: CBIC\",\"datePublished\":\"2020-02-12T04:01:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/gst-input-tax-and-refund-frauds-a-concern-cbic\\\/\"},\"wordCount\":365,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/gst-input-tax-and-refund-frauds-a-concern-cbic\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/12\\\/GST-df.jpg\",\"keywords\":[\"Blocked GSt\",\"CBIC\",\"central board of indirect taxes and customs\",\"fake invoices\",\"Fraud\",\"GST fraud\",\"GST input tax credit\",\"GST refund\",\"GSt refund fraud\",\"John Joseph\",\"mismatch\",\"tax evasion\"],\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.grainmart.in\\\/news\\\/gst-input-tax-and-refund-frauds-a-concern-cbic\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/gst-input-tax-and-refund-frauds-a-concern-cbic\\\/\",\"url\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/gst-input-tax-and-refund-frauds-a-concern-cbic\\\/\",\"name\":\"GST Input Tax and Refund Frauds a Concern: CBIC - Grainmart News\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/gst-input-tax-and-refund-frauds-a-concern-cbic\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/gst-input-tax-and-refund-frauds-a-concern-cbic\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.grainmart.in\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/12\\\/GST-df.jpg\",\"datePublished\":\"2020-02-12T04:01:00+00:00\",\"description\":\"Fraudulent input tax credit claims have become a headache for the tax administration. 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