GST INVOICES

GST INVOICES

TOPIC: Economy

Context- Finance Ministry is considering more measures to curb fake invoices under Goods & Services Tax.

Concept-

What motivates fraudsters to use fake invoices?

• Fake invoices are used because it not only helps evade GST on taxable output supplies by availing undue ITC and converting excess ITC into cash but also helps in inflating turnover using these invoices, booking fake purchases to evade income tax, diversion of funds and money laundering.

Provisions to curb fake invoices in GST Act:

• As per Section 132 of CGST Act 2017, issuance of an invoice or bill without supply of goods or services and wrongful availing or utilising Input Tax Credit is a cognizable and non-bailable offence if the amount is over ₹5 crore.
• The law prescribes a registered person to declare supply in return form, GSTR 1 and pay tax with the filing of return form GSTR 3B.
• As per the new rule to be implemented from January 2022: tax- payer will not be allowed to file the GSTR-1 for the subsequent month, till the GSTR-3B is filed.

Central Board of Indirect Taxes and Customs:

• It is a part of the Department of Revenue under the Ministry of Finance.
• The Central Board of Excise and Customs (CBEC) was renamed as the CBIC in 2018 after the roll out of the GST.
• It deals with the tasks of formulation of policy concerning levy and collection of customs, central excise duties, Central GST (CGST) and Integrated GST (IGST).