Central and state tax authorities have suggested online registration using photo and biometric immediately to curb the claims of input credit tax of fake companies. The central government may soon take strict steps to prevent fraud in GST registration.
Verification will have to be done without Aadhaar registration
, the Law Committee of the GST Council has also suggested that for any new registration, mandatory physical verification should be done on choosing the option of Aadhaar registration. The aadhaar-like process can be adopted for new registrations, under which new registrations can be done with an instant photos and biometric as well as verification of documents.
Registration facilities can be found at GST service centers.
Such facilities can be provided at GST service centers (GSK), just like banks, post offices and Passport Seva Kendras (PSKs) or Aadhaar Seva Kendras. GSK will function like Passport Seva Kendras. GSK can facilitate new registration on the lines of Passport Seva Kendras.
The registration can take up to 60 days, according to the suggestion of the temple committee, those who do not choose the option of Aadhaar authentication at the time of registration may have to give letters of recommendation from two trusted taxpayers. On the basis of the documents provided for registration, if the registration falls in the trustworthy category, then it can be registered in 7 days. If the person applying for registration does not fall in the trusted category, then his registration will be done in 60 days with some conditions.
48 people arrested so far To curb the continuing fraud in GST, 48 people have been arrested so far, including a woman and 3 chartered accountants (CAs). In the last 10 days, in addition to identifying 2,385 fake entities, 648 cases have been registered.
In 2018-19 and 2019-20, there were around 35,000 dealers who had a GST liability of over Rs 50 lakh (annually), but over 99% of the tax was paid through input tax credit (ITC). Apart from this, no income tax return has been filed in any of these forms in the last 3 years. The government is now going to curb such fraud.
What is input credit tax?
Input credit means the tax paid at the time of purchase of goods and at the time of paying tax on the output, you can adjust your input tax which you have already paid at the time of purchasing the goods. The tax is payable on the goods that are purchased from the surety bill, on which you get the input tax credit by filling the GST return.
Understand by example: Suppose you bought a raw material of 100 rupees to make goods. It will be taxed at 18%, ie Rs 18, so this amount has increased to 118. You took a surety bill of 118 rupees from the seller. Meaning you deposited GST of 18 rupees. Now if you sell goods worth 100 rupees for 150 rupees, then there will be a tax of 27 rupees on your goods according to 18%. So that customer will take a receipt of Rs 177, out of which a GST of Rs 27 will be imposed. In such a situation, during the return filing, you will have a tax liability of 9 rupees, in this case, you will get input credit of 18 rupees because you have paid it while purchasing the goods.