As GST compliance rate takes a hit, Centre scrambles to locate missing taxpayers

The government has also detected cases wherein fake invoices are being used to claim input tax credit.

In 2018-19, upto December, 499 cases of fake invoices used for claiming input tax credit have been detected involving amount of Rs 3,894.94 crore as against detection of 4 cases involving Rs 9.75 crore in July 2017-March 2018, the details in reply showed.

As compliance rate of tax filers, including composition scheme dealers, under Goods and Services Tax (GST) shows a declining trend, authorities are working on hunting these missing taxpayers.

The percentage of taxpayers who have not filed returns under GST has steadily increased over the last 12 months to over 28 per cent in November 2018 as against 10.56 per cent in November 2017, data shared by Minister of State for Finance Shiv Pratap Shukla in response to a Lok Sabha question on Friday showed.

The composition scheme fares along similar lines, with the percentage of filers who have not filed returns rising to 25.37 per cent in July-September 2018 as against 15.03 per cent in July-September 2017, the data showed.

Under the composition scheme, traders, manufacturers and restaurants pay a low nominal tax rate.

source:https://indianexpress.com/article/business/banking-and-finance/as-gst-compliance-rate-takes-a-hit-centre-scrambles-to-locate-missing-taxpayers-5524020/

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