Fraudulent Input Tax Credit claim leads to arrest for alleged IGST refund fraud and ongoing GST investigation.
Central GST officers uncovered a network of fictitious exporters that allegedly availed and utilized fake Input Tax Credit to claim unlawful IGST refunds. Risk analysis identified a risky exporter and e way bill tracing showed purported supplies inconsistent with vehicle movements, supporting a coordinated scheme. An individual alleged to have masterminded the network was arrested and remanded to judicial custody; further criminal investigation by tax authorities is ongoing.

Post Devolution Revenue Deficit Grant released to eligible states under constitutional provision following Fifteenth Finance Commission recommendations.
The Department of Expenditure released the seventh monthly instalment of the Post Devolution Revenue Deficit Grant, disbursing Rs. 9,871 crore to 17 eligible States under the Fifteenth Finance Commission framework, raising total releases in 2021 22 to Rs. 69,097 crore of a recommended Rs. 1,18,452 crore; eligibility and quantum were based on the assessed gap between State revenue and expenditure after accounting for devolution.

Back-to-back loan facility funds States to cover GST compensation shortfall and support health and infrastructure spending.
The Central Government released funds to States and Union Territories with legislatures under a back-to-back loan facility to meet the GST compensation shortfall, passing through central borrowings on specified tenor tranches to bridge gaps from inadequate cess collections; eligible units agreed to the arrangement, which is additional to routine cess-based compensation and is frontloaded to assist public expenditure planning, health infrastructure and capital projects, with allocations set out by State and tenor tranche.

GST revenue collection rises, signalling recovery and higher Centre-State settlements after regular IGST transfers and compliance boost.
The release reports gross GST revenue collected for September 2021 by component and notes that regular IGST transfers to CGST and SGST increased total Centre and State receipts after settlement; it records higher receipts versus the prior year, stronger import and domestic transaction revenues, rising average quarterly collections as an indicator of economic recovery, contributions from anti evasion measures, and a state wise table showing varied jurisdictional growth.

Self-service BoE retrieval functionality: webinars explain how taxpayers can fetch missing Bill of Entry details into GSTR-2A.
Self-service functionality enabling taxpayers to fetch missing Bill of Entry (BoE) details from ICEGATE for population in Form GSTR-2A is available on the GST Portal. GSTN is conducting multilingual webinars to demonstrate the BoE fetching process, answer live queries via YouTube live chat/comments, and will archive recordings on its dedicated YouTube channel for later viewing.

Bill of Entry retrieval lets taxpayers fetch missing import records from ICEGATE into the GST portal for GSTR-2A reconciliation.
On-demand retrieval allows taxpayers to fetch missing Bill of Entry details from ICEGATE into the GST portal when records do not auto-populate in GSTR-2A after the two-day update period. Users enter Port Code, BoE Number, BoE Date and Reference Date, then trigger QUERY ICEGATE; query history and status appear about thirty minutes later. Retrieved fields for IMPG and IMPGSEZ records include period for GSTR-2A, Reference Date, BoE identifiers, taxable value and tax amount, with IMPGSEZ also showing supplier GSTIN and trade name. Taxpayers must verify details and may raise helpdesk tickets with specified information if problems occur.

GST rate concessions and exemptions for specified medicines and goods, plus procedural reforms to streamline compliance and refunds.
The Council recommended targeted GST rate changes and exemptions for specified medicines, goods and services, including nil IGST on certain personal use imported orphan drugs and concessional rates for COVID 19 treatments; reclassification and re rating of several goods; introduction of reverse charge and export against LUT requirements for mentha oil; a special composition scheme for brick kilns; service sector parity adjustments and new e commerce tax liabilities; clarifications on classification and refund scope; procedural relaxations for ITC 04 filings and retrospective interest amendment; and compliance streamlining measures, while establishing two GoMs to study inverted duty correction and technology based compliance enhancements.

GST Council meeting outcomes announced by the Finance Minister, providing regulatory guidance on GST administration and implementation.
Chairing the GST Council, the Finance Minister presented the Council's regulatory outcomes and policy guidance on the administration of the Goods and Services Tax and communicated operative decisions to the public via a media conference, serving as an official press release summarising the Council's conclusions and implementation directions.

E-way bill requirement for service-led supplies: generate EWB when goods accompany a service using HSN and SAC codes.
Advisory explains that the E-way bill obligation under Rule 138 applies to movement of goods, not pure service supplies; no EWB is required where only services and no goods move. Where services involve movement of goods, taxpayers should generate an E-way bill by entering the goods HSN code along with the Service Accounting Code on the portal.

Fake input tax credit racket triggers arrests and criminal prosecution under GST law provisions for invoice fraud.
A criminal scheme generated and circulated fraudulent input tax credit using at least thirteen fictitious firms created on forged documents; a creator, a commission agent and a chartered accountant coordinated transfers from established firms to fake firms and then to a private company, from which cash was withdrawn and returned after commission deductions, resulting in a recorded fraudulent ITC of about Rs. 121 crore and arrests under GST penal provisions with investigations ongoing.

GST revenue recovery signals economic rebound as monthly collections and settlements rise after pandemic slowdown.
Gross GST revenue for August 2021 totaled Rs. 1,12,020 crore, comprising CGST, SGST, IGST (including import receipts) and cess; regular IGST settlements and an equal ad hoc IGST distribution between Centre and States/UTs produced consolidated post settlement CGST and SGST totals. The release highlights year on year and pre pandemic growth in collections, attributes the rebound to economic recovery and anti evasion measures, and provides a state wise table of monthly GST collection growth, excluding GST on import of goods.

Late fee amnesty extension expands filing window, revocation opportunities and EVC-based GST return filing access.
The Government extended the late fee amnesty closing date for reduced or waived late fees on FORM GSTR-3B for affected tax periods, widened the filing window for revocation of cancellation of registration limited to cancellations under clause (b) or (c) of sub section (2) of section 29 of the CGST Act, and further permitted EVC-based filing for FORM GSTR-3B and FORM GSTR-1/IFF to facilitate compliance.

HSN Code reporting requirement mandates digit-specific HSN in GSTR-1; technical issues can block filing and require corrective action.
Requirement to declare the HSN Code on tax invoices and in GSTR-1 is mandated with digit-specific reporting tied to aggregate turnover. Taxpayers must include the applicable HSN in Table 12 of GSTR-1. Reported operational issues include missing HSN entries in the Table 12 drop-down, blank HSN fields in JSON from the offline tool, and upload errors such as processing failures and duplicate invoice number rejections, for which taxpayers are directed to follow published corrective guidance.

Restriction on GSTR-1 filing: portal automatically blocks GSTR-1/IFF until required GSTR-3B returns are filed without officer approval.
Rule 59(6) bars furnishing outward-supply details in FORM GSTR-1 or via the Invoice Furnishing Facility until the registrant has furnished required FORM GSTR-3B returns for the specified prior tax-periods. The GST Portal will, from 1 September 2021, automatically check compliance on SUBMIT of GSTR-1/IFF, block filing with an error message if unmet, preserve saved records for later filing, and restore filing immediately upon receipt of the requisite GSTR-3B without tax-officer intervention.

Input tax credit fraud uncovered; alleged use of shell firms to pass fake ITC prompts arrests and ongoing probe.
Allegations of a racket to fraudulently pass on Input Tax Credit through shell entities prompted arrests after DG-GST Intelligence investigations traced creation and control of non existent firms issuing fabricated invoices. A chartered accountant is accused of managing identified fake firms and holding further incriminating evidence, while a partner at an accounting firm is accused of facilitating fake ITC transfers; both were remanded and further investigation is ongoing to identify additional controlled entities and documentary proof.

Audit compliance webinars provide taxpayer guidance on GST audit procedures with live Q&A and recorded sessions available.
GSTN has activated an audit functionality and is conducting multilingual webinars titled "Complying with Audit by Taxpayers" to familiarise stakeholders with compliance procedures; sessions are delivered by GSTN officials via YouTube with live chat Q&A and recordings available on GSTN's dedicated channel for later viewing.

GST Portal functionalities updated with module-wise resources and tutorial links for taxpayer compliance and guidance.
Implementation of new digital features on the GST Portal enhancing taxpayer interaction and compliance across core modules. The release documents a package of module-wise functionalities introduced for Registration, Returns, Advance Ruling, Payment, Refund and miscellaneous topics, together with related stakeholder outreach through webinars and informational videos and links to compiled release notes and GSTN YouTube videos.

Fraudulent input tax credit exposed as directors arrested for issuing fake invoices and passing illegitimate GST credits.
Allegations concern input tax credit (ITC) fraud through issuance of invoices without concomitant supply of goods; a firm allegedly used fraudulent invoices and fabricated transport records to show purchases from a non existent supplier, enabling it to claim and pass on ITC. Documentary evidence and statements linked two directors as central participants, who were arrested and remanded to judicial custody; an aggregate fraudulent ITC of Rs. 10.33 crore has been identified and the investigation is ongoing.

Bank account update requirement for GST registrations: taxpayers must furnish bank details via non-core amendment; system enforces compliance.
Bank account update requirement under the GST registration regime obliges newly registered taxpayers to furnish bank account particulars within the prescribed period after first login via the Non core amendment path; required fields include account number, IFSC, bank address and account type, verification by authorized signatory, and submission using DSC, e sign or EVC. The portal will prompt and enforce compliance for failures to update, and a success message plus acknowledgment are issued upon completion.

Blocking of e-way bill generation resumes; non-filing of consecutive returns will trigger e-way generation restriction.
Resumption of automated blocking of E-Way Bill generation from 15 August 2021 will occur where the system detects non filing of two or more monthly GSTR 3B returns up to June 2021 or two or more CMP statements for quarters up to April-June 2021; the portal will check Form GSTR 3B and Form GST CMP 08 filing status and restrict EWB generation accordingly, and taxpayers are advised to file pending returns or statements and consult the EWB portal user guide for blocking and unblocking procedures.