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Yogi orders Judicial Probe into Hathras tragedyIndia, ADB sign USD170 mn loan to strengthen pandemic preparedness and responseBengal Governor gripes about protocol lapses during Siliguri visit; writes to State GovtCus - Export of non-basmati rice - Notification 20/2023 insofar as it denies the benefit of the transitional arrangement as contained in para-1.05 of the FTP 2023, is bad in law: HCHealth Ministry issues Advisory to States in view of Zika virus cases from MaharashtraCus - Refund of SAD - 102/2007-Cus - Areca Nut and Supari are one and the same - Objections with regard to name, nature and status of importer or buyers or the end use of goods purchased by them etc. are extraneous: HCExpert Committee on Climate Finance submits Report on transition finance to IFSCAGST - No E-way bill - When petitioner imports machinery and after Customs clearance, transports same to his own factory, it cannot be said that such a transportation would fall within the definition of term 'supply' - Penalty imposable under second limb of s.129(1)(a): HCWIPO data shows Chinese inventors filing highest number of AI patentsGST - Fix responsibility on officers who allowed BG to lapse - Petitioner not justified in not renewing BG - Cost of Rs.15 lacs imposed, to be paid to PM Cares Fund: HCManish Sisodia’s judicial custody further extendedWrong RoadST - Whether any service is used for personal consumption or not is certainly question of fact and being question of fact, no substantial question of law arises: HCGovt proposes to amend Geographical Indication of Goods Rules; Draft issued for feedbackWarehousing Authority notifies several agri goods to be stored in only registered warehousesST - Even if the petitioner may have a case on merits, it is best left to be decided by the Appellate Authority under the hierarchy prescribed under the FA, 1994: HCUS FDA okays Eli Lilly Alzheimer’s drugFive from Telangana killed in car accident on Pune-Solapur HighwayGST - Existence of an alternative remedy is a material consideration but not a bar to the exercise of jurisdiction: HCRailways earns Rs 14798 Crore from Freight loading in June month
 
GST - ITC Fraud - 12000 cases booked so far; 365 persons arrested: CBIC

By TIOL News Service

NEW DELHI, DEC 24, 2020: FOR GST authorities, the culture of fake invoice enabling ITC fraud has assumed baleful proportions, severely hurting the exchequer. The CBIC has so far booked 12000 such cases and arrested 365 persons. During the last six weeks alone, more than 165 fraudsters have been arrested.

There have been some misinformation on the recent rule changes on the Social Media causing confusion among the genuine taxpayers, states the CBIC Press Release.

CBIC therefore clarifies misinformation with facts:

Myth 1: No opportunity of being heard will be given if proper officer believes that registration is liable to be cancelled.

FACT 1: The GST laws passed by the Parliament and state legislatures provide that GST registration is liable to be cancelled for those who have not filed 6 or more returns. it is therefore wrong to say that the cancellation will be done without reasons. To protect the interest of revenue, this provision has been put in the law so that fraudsters do not run way with GST collected from their customers.

It may be further noted that no cancellation of registration would be done without giving proper opportunity of hearing to the taxpayer. Immediate action for suspension is necessary in cases where unscrupulous operators seek to pass on huge fake credit by gaming the system. Such action will not affect genuine taxpayers and will provide them a level playing field. Moreover, suspension may be revoked by the officer based on the taxpayer's representation.

Myth 2: Even if there is a clerical error in filing returns, GSTIN will be cancelled. No option to correct your mistakes.

FACT 2: This is absolutely not true. Only in fraudulent cases where there are significant discrepencies based on data analytics and sound risk parameters, and not mere clerical errors, the action of suspension and cancellation will be taken up. An example of a fraudulent case and serious discrepancy is where one has passed on Crores of Rupees of Input Tax Credit and not filed GSTR3B returns, nor has he filed Income Tax Returns or disclosed very little liability in Income Tax returns etc, The GST ecosystem is very carefully working toward curbing the fake invoice frauds


 RECENT DISCUSSION(S) POST YOUR COMMENTS
   
 
Sub: Cancellation of registration

Illegal action of cancellation is pandemic in GST regime. I have several such cases. In one such case in hand registration was cancelled to recover illegal demand on which no SCN was issued. Immediately after deposition of amount registration was restored.
Matter is being agitated in Uttrakhand High Court on date to allow refund of illegally collected amount. Decision is pending.

Posted by Chirag Mathur
 

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