Bogus claims of input tax credit identified as a major source of revenue leakage
Senior officials of the Revenue Department of Andhra Pradesh, led by its Special Chief Secretary Rajat Bharagava, and Central and State GST officials discussed the strategy to be adopted for effective implementation of the GST Acts, at the State Tax Chief Commissionerate here on Thursday.
The participants stressed the need for close coordination between the Centre and the State tax departments in sharing the data on outward and inward supplies as well as the returns furnished by the taxpayers every month.
They insisted that information collected through market intelligence should be collated and shared. Besides, orders passed by the officers of the Central and State government departments on contentious issues had to be shared seamlessly so that the officers could present strong arguments in courts if the taxpayers take legal recourse.
It was observed that unlawful or bogus claims of input tax credit with fictitious invoices had been a major source of revenue leakage under the GST Acts. The officers said it was also necessary to closely monitor those defaultIng in filing returns and on the collection of tax arrears.
The meeting took various decisions on the modalities of sharing the data, intelligence, orders, joint investigations and periodic analysis of different sectors.