HSN/SAC invoicing requirement expanded to six digits for higher turnover GST taxpayers, increasing invoice classification detail.
With effect from 1 April 2021, taxpayers above the turnover threshold must quote six digit HSN Code or SAC on taxable supply invoices, while taxpayers below that threshold must furnish four digit HSN on B2B invoices; six digit HSN codes used in Customs apply to GST and official tariff and GST rate schedules and search facilities on government portals support code determination.

GST compensation disbursement: central government advances compensation, back-to-back loans and IGST ad-hoc settlements to states.
The Central Government disbursed GST compensation, issued back to back loans to cover compensation shortfalls, and effected an ad hoc IGST settlement to States/UTs for FY 2020 21, with state wise allocations detailed for the payments made on 27 and 30 March 2021.

Input tax credit fraud leads to arrest and remand, investigations continue under criminal GST provisions.
Detection of a scheme to avail and pass on inadmissible input tax credit through goods-less invoices led to enforcement by the Anti Evasion branch of CGST Delhi (West). Primary beneficiary firms in the metal scrap trade were identified, and their proprietor admitted involvement. Criminal allegations were framed under Section 132 of the CGST Act, with the accused arrested and remanded to judicial custody; investigations are ongoing.

Input tax credit fraud uncovered: arrest after fake firms issued goods less invoices and incriminating evidence was seized.
CGST investigators uncovered a scheme using five dummy firms to issue goods less invoices for items like butter, ghee and oil to pass on inadmissible Input Tax Credit; documentary and electronic evidence were seized and the principal suspect was arrested and remanded under provisions of the CGST Act while further investigation proceeds.

Composition scheme opt-in requires filing FORM GST CMP-02 by the portal deadline to effect the composition levy promptly.
Opting into the Composition Scheme for FY 2021-22 requires eligible taxpayers to file FORM GST CMP-02 by the portal deadline to have the composition levy apply from the effective date; existing composition taxpayers need not reapply. Taxpayers switching from regular registration must file FORM GST ITC-03 to reverse ITC on stocks within sixty days. Eligibility is limited by aggregate turnover thresholds and supply type; inter-state suppliers, certain e-commerce supplies, and manufacturers of notified goods are excluded.

Input Tax Credit can be used to discharge GST liabilities; unauthorised demands for cash payment are not sanctioned.
Taxpayers retain the right to discharge GST liabilities for March 2021 by utilising Input Tax Credit in their electronic credit ledger as permitted by law; reports that officers instructed payment of a maximum tax liability in cash via unauthorised communications are not sanctioned by the Government or the Central Board of Indirect Taxes and Customs.

GST compensation special borrowing window: full shortfall released to states through weekly instalments and GSDP linked borrowing permission.
The Government used a special borrowing window to borrow in government stock of specified tenors and equally allocate proceeds among States to meet the GST compensation shortfall, completing weekly instalment disbursements which concluded the proportionate pending shortfall distribution for participating States and Union Territories with legislatures; concurrently, additional borrowing permission equivalent to half a percent of GSDP was granted to States choosing Option I to mobilise supplementary resources.

E-invoicing mandate expands applicability; webinar offers operational guidance and live Q&A for compliant implementation.
The e-invoicing mandate expands applicability by reference to aggregate turnover in preceding financial years, requiring affected taxpayers to begin issuing electronic invoices from the staged effective dates, including the expanded cohort from April 2021. GSTN is hosting a webinar led by GSTN and NIC officers to explain operational compliance, provide live Q&A, and direct taxpayers to FAQs and recorded guidance on the official YouTube channel.

Input tax credit fraud leads to arrest after alleged creation of fictitious firms and issuance of bogus invoices.
Allegations concern a scheme to illicitly claim and pass on Input Tax Credit through creation and operation of fictitious firms and issuance of sham invoices without actual supply. Documentary evidence and recorded statements attribute central coordination to the accused, who was arrested after surveillance and produced before a magistrate, with further investigations ongoing.

GST portal functionality updates improve taxpayer access to registration, returns, payment and refund resources and webinars available online.
Enhanced GST Portal functionalities have been implemented across Registration, Returns, Advance Ruling, Payment, Refund and miscellaneous modules to aid taxpayer compliance and interaction. Accompanying materials include periodic compilations of deployed module features and instructional outreach-webinars and videos-published on the GSTN YouTube channel to assist stakeholders in accessing and adopting the new capabilities.

Fake invoice racket: GST registration misuse and fraudulent input tax credit claims lead to arrest and evidential seizures.
Investigations uncovered 18 non existent firms created to generate sham GST transactions and fraudulent Input Tax Credit claims, operated using stolen PANs, bank details and contact information; the central organiser admitted floating the dummy entities, some documents were recovered during searches, and the organiser was arrested for offences under clause (b) and (c) of sub Section (1) of Section 132 of the CGST Act.

GST fraud investigation uncovers fake invoicing syndicate; arrests and major data seizures advance forensic probe.
Two principal members of a fake invoicing syndicate were arrested after being traced abroad; seizures included laptops, phones, identity documents and notary stamps. Preliminary inquiry indicates hundreds of shell firms created from procured PAN and Aadhar data issued fake GST invoices that substantially evaded tax revenue. The operation used high tech apps and remote messaging to coordinate across multiple locations. The arrested were remanded to judicial custody while forensic analysis of electronic data continues and further involvement of other persons and companies is being investigated.

GST compensation shortfall addressed through central special borrowing window with back-to-back loans, plus GSDP-linked borrowing permission.
A special borrowing window was used to raise funds on behalf of States and UTs and Rs. 84,000 crore was borrowed and passed on as back-to-back loans to address shortfalls in the GST compensation fund; additionally, the Centre granted GSDP-linked extra borrowing permission to States choosing the specified option, with aggregate permission accorded for twenty-eight States, and state-wise details are provided in an annexure.

GST compensation shortfall addressed via special borrowing window, with proceeds allocated proportionately to States and GSDP-linked additional borrowing authorised.
The Centre has been meeting the GST compensation shortfall through a special borrowing window, borrowing in Government Stock of three- and five-year tenors and passing proceeds proportionately to States and UTs by instalments. The government allocates each tenor's borrowings equally among States according to their compensation gaps, discloses weighted average interest rates, and has granted States an additional GSDP-linked borrowing option to mobilise further resources; a state-wise schedule records permissions and amounts passed through the window.

Fraudulent Input Tax Credit scheme leads to arrests and prosecution under CGST Act provisions for organized fake invoicing network
A network of fictitious intermediary companies and non-existent suppliers was used to generate and pass bogus Input Tax Credit to corporate entities without actual supply, quantifiable as over Rs. 392 crore of ITC passed through bogus invoices exceeding Rs. 3,000 crore. Two former employees are accused of a deliberate criminal conspiracy to defraud the Government and were arrested and remanded; investigations under the CGST Act are ongoing.

Input tax credit fraud uncovered by analytics leads to arrest and prosecution under GST provisions, investigation ongoing.
Input tax credit manipulation via a multilayered network of fictitious firms produced and circulated fake GST credits; analytics identified a principal operator who created a firm in his name and arranged ITC from numerous sham entities on commission, with investigations tracing issuance of fake invoices and quantified fraudulent ITC. The conduct is treated under Section 132(1)(b) as a cognizable, non-bailable offence; the accused was arrested under Section 69(1) and remanded to judicial custody while further investigation proceeds.

Tax fraud under GST: use of input tax credit and invoice suppression leading to arrest and criminal probe.
A company director allegedly suppressed invoices and misused input tax credits by treating fresh batteries as lower rated scrap, while supplier verification showed sale of fresh batteries; claimed manufacture of lead was found economically implausible, and clearance of goods without invoices led to arrest and ongoing criminal investigation into a substantial alleged tax shortfall.

GST revenue trend signals recovery as collections and IGST settlements boost central and state receipts.
Gross Goods and Services Tax collections for February 2021 totalled Rs. 1,13,143 crore across CGST, SGST, IGST (including import related IGST) and cess; regular IGST settlements to CGST and SGST plus an equal Centre-States/UTs IGST ad hoc settlement were effected, producing specified central and state receipts. Revenues were 7% higher than the same month last year, with stronger growth from imports than domestic transactions, and a state wise table shows varied jurisdictional growth and contractions.

GST compensation shortfall funding: central special borrowing window provides states with staggered loans to cover revenue gaps.
The Government established a special borrowing window to meet the GST compensation shortfall by borrowing centrally in three year and five year government stock and passing the proceeds to States and UTs in instalments, allocating amounts across States in proportion to their compensation gaps; additionally, the Centre granted permission for extra borrowing equal to 0.50% of GSDP to States opting for Option I, with permission granted to twenty eight States.