Guidelines for Special All-India Drive against fake registrations

In past few years Goods and Service Tax Department has identified and curbed various cases of Fake Firms, Bogus Invoicing, Firms in name of persons from economically weaker sections etc usually made to evade taxes and causing revenue loss to the Government. 

 

GST Officials has been taking help from various data analytics sources such as like BIFA, ADVAIT, NIC Prime, E-Way analytics, etc, as well as through human intelligence, Aadhar database, other local learning and the experience gained through the past detection and modus operandi alerts to detect these organizations and cases. But even after many detected cases there are still various organizations which are involved in such activities which is causing loss to Government in form of GST wrong input passing.

The Central Board Indirect Taxes & Customs, GST Policy Wing through its Instruction No. 01/2023-GST have proposed special drive for identifying these fake registrations from 16th May 2023 to 15th July 2023 to detect suspicious / fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue.

 

The government proposes following action through this drive:

1. Suspension/Cancellation of Registration of Such Fake firms registered with GSTN.

2. Blocking of credit of such fake firms.

3. Demand and recovery of Input tax credit from recipient of such fake firms through details extracted from GSTR-1

4. Provisional attachment of property/Bank Account of Mastermind of Such Fake firms.

Link to detailed instruction regarding the Special drive is given below:

Guidlines for Special All-India Drive against Fake registrations

 

GST ISSUE ADVISORY ON BANK ACCOUNT VALIDATION

Many of us and our clients are receiving Bank validation mails and messages from Goods and Service Tax Department in past few days. These mail usually contains errors in Bank Account Validation which includes Account closure, Account PAN not linked, Wrong name in Bank Account etc.

On 24.04.2023 GSTN has issued advisory for the Taxpayers which says:

" GSTN is pleased to inform you that the functionality for bank account validation is now integrated with the GST System. This feature is introduced to ensure that the bank accounts provided by the Tax Payer is correct. The bank account validation status can be seen under the Dashboard→My Profile→Bank Account Status tab in the FO portal. Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the validation is performed for his declared bank account"

Link to full text is given below:

https://www.gst.gov.in/newsandupdates/read/579

As we are aware that linking of Bank Account is mandatory at GSTN and non linking can result in Suspension as well Cancellation of GST Registration. Readers are advised to kindly check the Bank Account linkage at their respective GSTN Login.

Tax Amendments Proposed in Union Budget 2015-2016

Honorable Finance Minster Shri Arun Jately Ji, has given his Union Budgetary speech today for the budget of the year 2015-2016. You can get full Summarised updates from following link:
http://www.ngoandtaxconsultant.in/2015/02/unionbudget2015-2016.html


We are giving a comprehensive list of Amendments in Direct and Indirect Taxes proposed for the year 2015-2016.

DIRECT TAX

1. No Changes in Tax Slabs for Individual Assesses. Maximum no taxable income will be Rs. 444,200.00

2. Wealth Tax to be abolished.

3. To make up for loss due to removal of Wealth Tax. A special surcharge of 2 % on Super Rich is to be levied (Income above Rs. 1 crore).

4. Assets to be specified in Wealth Tax Return, is now to be specified in Income Tax return.

5. Corporate Tax to be reduced to 25% from earlier 30%. All the exemptions to be rationalized and removed in phase manner.

6. Exemption on Transport Allowances for Salaried class to be increased from Rs. 800 to Rs. 1600.

7. Deduction for health premium under section 80D to be increased from Rs. 15000 to Rs. 25000 and for senior citizen to Rs. 30000. For Super Senior Citizen the expenses upto Rs. 30000 will be allowed as deduction on medical expenses

8. Pension fund and New Pension fund deduction to be increased from Rs. 1.00 lakhs to Rs. 1.50 lakhs.

9. In case of serious diseases, the deduction of Rs. 60000 is raised to Rs. 80000

10. Income tax on Royalty for Technical Services reduced to 10%

11. 100% deduction on contirbution to Swach Bharat Abhiyaan and Clean Ganga Mission

12. Quoting of PAN number made necessary for purchase above Rs. 1.00 lakhs

13. Cash disallowance for purchase above Rs. 20000 of immovable property.

14. Rs. 50000 deduction under section 80CCD

15.Yoga to be charitable activity under Income Tax Act.

16. No DTC as Income Tax Act, has been modified to include most of the provision of DTC

17. GAAR will be defered by 2 years.

18. Manager of Off Shore Fund can open offices in India and laws will be ammended to provide them exemption as if they are not working from India.

19. Deduction under section 80U to be increased.

20. New Law on Black money to be intoduced. To have prosecution and penalty provision for Tax evasion.

INDIRECT TAX

1. Service Tax now increased to 14% instead of 12.36%

2. GST to be applied next year.

3. Service Tax exemption to Cold Storage for certain fruits.

4. Custom Duty to be reduced on 22 goods, to encourage Make in India mission.

5. Excise duty will be reduced to 6% on leather shoes

6. Excise duty rates to be reduced

7. Excise registration will now be online and will be provided in 2days. Excise return and docs to be filled digitally.