Suspense Crime Sach Ka Dam
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The Good and Service Tax Authority is now monitoring banking transactions of taxpayers for real-time access. This means that duplicate invoices can be identified and input tax credit can be used by the business section. A recent investigation by the GST department has revealed that undue tax credit is being used for charging transactions through fake invoices.
In many cases it has been found that the money is coming back to the person making the fake invoice through multiple transactions in the previous transaction. Shell companies are also misappropriating money through fake bills. Money trail is important in these cases, reports Financial Express.
multiple accounts in one business
Taxpayers provide only one bank account details during GST registration and can use multiple accounts in one business. At present even data on banking transactions is difficult to obtain. FE quoted sources as saying that by the time the details were made available, the company or person making the fake invoices had disappeared. In such a situation, GST officials now want to get instant data of banking transactions.
Preparing to stop tax evasion
Currently, to keep a check on tax evasion, the Income Tax Department collects data on high-value transactions, suspicious transactions as well as cash deposits above certain limits. The report added that the Central Board of Indirect Taxes and Customs (CBIC) has also taken up the issue to crack down on bogus invoices to curb tax evasion. The report states that there is a need for discussion and consideration with the RBI.
Planning to prevent tax evasion
The GST authorities are planning to include more databases in their risk parameters to nab potential tax evaders. This service will be done more for related business. Databases that are likely to be exploited.
What will change?
If this is done then it will be known what kind of services are being provided by different companies and whether they are paying the right tax and availing input tax credit. However, GST officials are already planning to cross-check taxpayers’ information with the corporate affairs ministry’s filings for the income tax database and try to understand whether they are paying the right tax. .
1.4 crore businesses registered under GST
The focus on tax evasion comes at a time when the GST department is trying to crack down on fake invoicing and tax evasion. There are 1.4 crore business registrations and professionals under GST. The government wants to increase the taxpayer dependent area by deciding to impose tax on tax evaders.
