Amid ongoing concerns over the rise in cases of frauds, GST Council is mulling over measures to curb fraudulent tax evasion.
Amid ongoing concerns over the rise in cases of frauds, GST Council is mulling over measures to curb fraudulent tax evasion, ET Now reported citing unidentified sources. The amount of GST frauds was estimated to be Rs 45,682 crore since the rollout of tax reform measures on July 1, 2017, minister of state for finance Anurag Thakur had recently said in a reply in Rajya Sabha. An amount to the tune of Rs 6,520.40 crore has been unveiled in the April-June period of fiscal year 2020 alone, the reply added. In the two years of GST implementation, a total of 9,385 cases of tax frauds were reported Out of the total amount, 1,593 cases were reported in the first three months of the running fiscal, Anurag Thakur also said in a written reply to the upper house.
Raising concerns over the issue, West Bengal’s Finance Minister Amit Mitra had written to Finance Minister Nirmala Sitharaman asking to set up a task force having state and Central officers to detect all cases of tax evasion and take action against racketeers for recovery of evaded tax. He has also said that hasty and unplanned rollout of the GST framework has not only led to tax frauds but also lower tax collection.
Meanwhile, the GST collections fell below Rs 1 lakh crore in the month of August. The collections slipped to Rs 98,202 crore in August, according to government data. The gross revenue collections GST in the month of July stood at Rs 1.02 lakh crore. The GST came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India by the government. The tax replaced existing multiple flowing taxes levied by the central and state governments.
Source- Financial Express.