India: Nine-point plan firmed up to plug GST revenue leaks

• A nine-point plan has been firmed up to plug revenue leakages under the goods and services tax regime.
• It includes setting up a panel with tax officials from Centre and states to draw up a standard operating procedure for tackling refund frauds.
• The action plan was finalised after a meeting of state and central GST chief commissioners on 7 Jan 20 chaired by revenue secretary Ajay Bhushan Pandey. The committee’s aim will be to examine and implement quick measures to curb fraudulent refund claims.
• Linking foreign exchange remittances with integrated GST refunds may be undertaken to check fraudulent refund claims for new or risky exporters, while a single bank account for remittance receipt and refund disbursement will be created, it said.
• Further, the GST Network, Central Board of Direct Taxes and Central Board of Indirect Taxes and Customs will share data on a quarterly basis for early identification and checking of fraud cases, the statement said.
• Industry needs to be careful in GST filing and should ensure that adequate control is exercised on vendor’s compliances, which would anyway be needed with introduction of e-invoicing from April, said Pratik Jain, Indirect Taxes Leader, PwC.

External Link : https://economictimes.indiatimes.com/news/economy/policy/nine-point-plan-firmed-up-to-plug-gst-revenue-leaks/articleshow/73145421.cms