Investigation on 1.25 lakh entities for fake GST ITC

CBIC plans to also take a review meeting of the investigations with central and state GST officials.

The Goods and Services Tax (GST) authorities are likely to continue the follow-up investigations on over 1.25 lakh entities till December to plug revenue leakages, a senior government official told Moneycontrol on September 15.

These investigations relate to fake input tax credit (ITC).

ITC allows GST taxpayers to claim credit for taxes paid on inputs used in the production of goods or services. Fake invoicing means invoices are issued even when there is no real supply of goods or services. These invoices are then used to avail ITC, which causes a revenue loss to the government.

The fake credits detected in the first special drive were to the tune of Rs 63,000 crore.

Read more at : moneycontrol