GST: Temporary Attachment of Assets If Fake Invoice Exceeds INR 2 CR

The FM Nirmala Sitaraman during the Budget 2021-22 urges the provisional attachment of the assets of the individual who has hands behind the bogus GST invoices exceeding Rs 2 cr.

FM said that “A new provision is being inserted in the Customs Act (section 114AC) to prescribe penalty in specific cases where any person claims refund of tax Simple steps to claim and know the status of income tax return refund online on government income tax website. Find the full process enclosed with the article. Read more or duty discharge, using fraudulent invoices, on exports of goods.”

The latest plan under section 114AC is put in the GST act as per the penalty towards the usage of the fake input tax credit for availing the refund.

Section 114C notified that “Where any person has obtained any invoice by fraud, collusion, wilful misstatement or suppression of facts to utilise input tax credit on the basis of such invoice for discharging any duty or tax on goods that are entered for exportation under a claim of refund of such duty or tax, such person shall be liable for a penalty not exceeding five times the refund claimed”.

This faithful step of the government with respect to the bogus peoples will restrict and ultimately stop the bogus GST invoices implementation as well as the fake claim of the input tax credit A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India. Read more .