The Central Board of Indirect Taxes and Customs (CBIC) officers, in a national-level meeting, discussed performing regulatory checks on fake invoicing along with strengthening the services for better tax compliance.
In the early days of November 2021, the senior officials of the Directorate General of GST Intelligence (DGGI) met to discuss Goods and Services Tax (GST) compliance at an annual conference held an exclusive discussion on tax evasion.
CBIC stated that officers discussed strengthening the compliance enforcement mechanism, the issue of fake invoicing, including in various sectors, e-way bill monitoring mechanism, and other issues related to seizure and arrests. The CBIC expects that the outcome of the meeting would provide inputs to create policies for better compliance.
Following a series of fake invoicing cases in recent months, the move to step up regulatory oversight to check irregularities in invoicing. The compliance enforcement drive that is going on has been helping governments to increase their GST revenue collections. Authorities are keen to increase the monitoring as the technology-enabled oversight helps identify tax evasion cases with precision.
The tax authorities have been using goods movement data from toll booths collected through RFID tags in commercial trucks to match the e-way bills data. This move helps cross-verify vehicle movement details specified in the e-way bill with their physical movement and detect mismatches.
CBIC has issued guidelines for scrutinising the proper use of Input Tax Credit (ITC) under Central GST rules earlier this month. CBIC seeks to bring clarity and transparency to GST officers and the industry. Also, the guidelines issued are in line with the observations made by various courts.
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DVSR Anjaneyulu known as AJ, is a Chartered Accountant by profession. Loves to listening to music & spending time with family and friends.