Fraudulent input tax credit schemes exposed, leading to arrest and ongoing investigation of a paper-firm invoicing network.
Enforcement action targeted a network that created multiple paper firms and issued bogus invoices to wrongfully obtain input tax credit. Investigation linked a central operator to fabrication of entities across jurisdictions, supported by seized electronic devices and documents, and established admission of creating numerous firms and passing fraudulent tax credits. Arrest prevented flight and judicial custody followed; investigations continue to identify associates and quantify the scheme.

Fraudulent input tax credit generation exposed, kingpin arrested under criminal tax offence provisions and investigations continue.
A large-scale scheme generated inadmissible input tax credit through fabricated billing and fictitious e way bills targeting the milk products sector; organisers used multiple shell firms to create bogus invoices for goods such as ghee and milk powder and pass erroneous ITC to beneficiary companies. The principal accused admitted involvement and was arrested under criminal tax offence provisions; enforcement recovered documentary evidence and a portion of the inadmissible ITC, and investigations continue to identify additional fictitious entities and beneficiaries.

GST reduction could offset emission compliance costs and stimulate passenger vehicle demand while supporting electric vehicle incentives.
Government GST reduction could offset price increases from the BS VI transition, restoring consumer affordability and stimulating passenger vehicle volumes; automobiles now attract 28% GST plus cess. The article also recommends extending FAME scheme incentives to the personal car segment to accelerate electric vehicle adoption, subject to price, localisation and range criteria, while manufacturers scale production to leverage public investment in electrification and charging infrastructure.

Extension of filing deadline for GST annual returns and reconciliation statements to aid compliance after COVID disruptions.
The Government, on GST Council recommendations, has extended the due date for filing Annual Return (FORM GSTR 9/GSTR 9A) and Reconciliation Statement (FORM GSTR 9C) for financial year 2018 19 due to COVID 19 disruptions, with notifications to follow; filing of the Annual Return and of the Reconciliation Statement is optional for taxpayers below specified aggregate turnover thresholds.

Special borrowing window for GST compensation shortfall enables central back-to-back loans to states with weekly tranches and defined tenor.
A special borrowing window was used to address the 2020-21 GST compensation shortfall through coordinated back-to-back borrowings. The Central Government borrowed and transferred an initial tranche of funds to sixteen States and two Union Territories. The borrowing carries an interest rate of 5.19 percent, contemplates weekly releases under the scheme, and has an expected tenor broadly in the range of three to five years to provide targeted liquidity support for GST compensation.

Bogus Input Tax Credit claims lead to arrest for issuing fake invoices and passing fraudulent tax credits.
Alleged large-scale fraud involving fraudulent claims of Input Tax Credit (ITC) by issuing fake invoices without actual supplies; the accused, as controller of multiple firms across states, purportedly enabled availing, utilisation and passing on of fictitious ITC based on fabricated documentary records, with documentary evidence and witness statements identifying him as the central organiser and investigators tracing other implicated firms.

Special Window for GST compensation cess shortfall permits central borrowing to be passed as back-to-back loans to states.
A central Special Window will address the GST Compensation Cess shortfall by the Government of India borrowing in tranches and passing the proceeds to participating States as back-to-back loans, recorded as State capital receipts and financing their fiscal deficits, avoiding differential SDL interest rates and not affecting the Centre's fiscal deficit.

Additional borrowing permission under Option-1 allows states to raise extra funds to meet GST shortfall.
Permission under Option-1 permits States to raise additional open market borrowings calibrated at 0.50% of GSDP to address GST revenue shortfalls; participating States also receive unconditional permission to borrow the final 0.50% instalment from the 2% additional borrowings allowed previously, and a special window is being created by the Ministry of Finance to facilitate these borrowings.

Additional borrowing permission waiving reform condition enables several states to raise funds for GST shortfall.
Twenty States have been authorized to mobilize additional funds through GSDP-linked open market borrowings to address GST-related revenue shortfalls, with the final instalment of the extraordinary borrowing limit permitted without the earlier reform conditionality for States that opted for Option-1; a coordinated special borrowing window is also being arranged to facilitate issuance of debt to cover the aggregate shortfall.

Revenue compensation for states remains unresolved after repeated GST Council meetings, prolonging disagreement over shortfall mechanism.
Failure to agree on revenue compensation for states arising from GST shortfalls is the operative issue: the GST Council, in a meeting continuing prior deliberations, did not reach consensus on the mechanism by which states would be compensated for their fiscal shortfall.

E-way bill restriction for high-turnover taxpayers failing GSTR-3B follows after consecutive non-filing, affecting portal access.
Under Rule 138E(b) CGST Rules, E-way Bill generation will be blocked on the EWB Portal after 15 October 2020 for any GSTIN linked to a PAN with Aggregate Annual Turnover above Rs. 5 Crore that has failed to file GSTR-3B returns for two or more consecutive tax periods up to August 2020; the block applies regardless of role as consignor, consignee or transporter and taxpayers should file pending GSTR-3B returns to restore continuous access.

Fake input tax credit scheme exposed; key operator arrested and investigations continue into fictitious firms and forged invoices
A tax-credit fraud was orchestrated through creation and operation of multiple fictitious firms and issuance of invoices without actual supply, resulting in passage of substantial fake input tax credit. Investigation indicates entities were created on forged and bogus documents which routed fraudulent ITC among non-existent firms. A central coordinator was identified, arrested, produced before the magistrate and remanded to judicial custody, while further multi-location investigations continue.

Annual GST return reporting: report only transactions of the relevant financial year; extension granted and threshold-based filing applies.
Taxpayers must report only values pertaining to the financial year 2018-19 in FORM GSTR-9; auto-populated or carried-over figures relating to the prior year should be ignored, and no adverse view will be taken where previously filed returns for 2018-19 include details of supplies or input tax credit pertaining to the prior year. An extended due date has been provided and taxpayers meeting the applicable aggregate turnover thresholds must furnish FORM GSTR-9 and, where required, FORM GSTR-9C.

Fraudulent Input Tax Credit claims led to IGST refund abuse and criminal enforcement action including arrests and ongoing investigations.
Exporters claimed Input Tax Credit on invoices from non existent or shell suppliers, used that ITC to pay IGST on alleged exports, and obtained IGST cash refunds; enforcement searches established that suppliers issued only bills without supplying goods, leading to arrests and ongoing investigations to quantify liabilities and pursue criminal and recovery measures.

Return filing reform: auto-generation of GSTR-3B from GSTR-1 with mandatory timely GSTR-1 filing to enable auto-populated liabilities and credits.
A return filing reform requires timely filing of FORM GSTR-1 to enable viewing of available input tax credit and auto-population of FORM GSTR-3B from GSTR-1 data; measures include revised due dates for quarterly GSTR-1 filers, staged auto-population of liability and ITC via FORM GSTR-2B, mandatory filing sequence with GSTR-1 preceding GSTR-3B, and extension of the GSTR-1/3B system as the default until law is amended.

E invoice compliance: transitional waiver permits late IRN generation to validate invoices and avoid penalty under GST rules.
Taxpayers required to issue e invoices who issued B2B or export invoices without obtaining an IRN during the initial implementation month may obtain IRNs from the Invoice Reference Portal within a limited grace period; upon timely IRN generation such invoices will be deemed valid and penalties for procedural non adherence will be waived, whereas invoices issued after the concession period will be treated as non compliant and subject to ordinary enforcement under the CGST rules.

Goods and Services Tax collections rise, indicating economic recovery and suggesting continued revenue improvement into the festive season.
Goods and Services Tax (GST) receipts for September show a year on year increase and an uptick over August; collections are detailed by Central GST, State GST, Integrated GST (including import collections) and cess, with import and domestic sources reported above the prior year month's levels, and observers link the rise to resumed economic activity and measures like e invoicing that may reduce leakage.

GST revenue rise in September driven by IGST receipts and intergovernmental settlements boosting central and state shares.
Gross Goods and Services Tax receipts for September 2020 totalled Rs. 95,480 crore, with IGST the largest component and amounts from import of goods included within IGST. Regular settlements transferred specified sums from IGST to CGST and SGST, producing post settlement totals accruing to the Central and State governments. The release reports year on year increases for the month, provides percentage comparisons for import and domestic transaction sources, and supplies state wise collection data for September 2020 versus September 2019, excluding GST on import of goods.