The government plans to do away with the flexibility given to buyers and sellers to revise their output liability by locking their invoices and removing the edit option in the next financial year, Revenue Secretary Sanjay Malhotra said. The proposal will be discussed at the next GST Council meeting, he said.
The move aims to improve compliance and curb the menace of fake invoicing in the indirect tax regime.
“We need to further improve compliance so that the menace of bogus entities and fake billing is somehow controlled. Right now, it is a trust-based system and we have given a facility which is being misused by some unscrupulous, non-existent kind of people by making these bogus companies. So we will tighten our systems,” Malhotra told Moneycontrol in an interview.
The data is there but it is not being used fully as of now to curb the fake invoicing menace.
“We don’t need GST Council approval on this but we will bring it to their notice in this quarter’s meeting. The systems are being built, so it will take some time. There has to be acceptance for each invoice. So this whole system needs a change,” the revenue secretary said.
Source: moneycontrol
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