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.

Provisional attachment of property to protect revenue permitted during specified tax proceedings, subject to due diligence and procedural safeguards.
Provisional attachment under section 83 is available when the Commissioner, after due diligence and recording reasons, forms the opinion that attaching property belonging to the taxable person is necessary to protect Government revenue; attachment is effected by order in FORM GST DRC 22, the taxable person may object and seek hearing, and the Commissioner may release property by order in FORM GST DRC 23 where attachment is no longer warranted.

IGST refund facilitation: conditional sanction with undertakings and post refund audit to clear blocked claims.
Pending IGST refunds affected by ICEGATE transmission failures due to GSTR 1/GSTR 3B mismatch may be sanctioned on exporters furnishing undertakings or CA certificates and undergoing post refund audit; this applies to shipping bills up to the stated cut off. Separately, invoice mismatch error SB 005 can be corrected via the customs officer interface on a permanent basis for past shipping bills irrespective of filing date, subject to a nominal fee.

GST compensation shortfall funding continued via a central special borrowing window, releasing tranches to States and GSDP linked borrowing permission.
The Central Government continued meeting the GST compensation revenue shortfall through a special borrowing window, releasing a seventeenth instalment funded by Government stock and allocating proceeds pro rata to States and UTs according to their assessed shortfall and by tenor; cumulative disbursements through the window and statewise transfers are reported. Concurrently, the Centre granted consenting States additional GSDP linked borrowing permission to mobilise further resources for compensation shortfall, and statewise entitlements and amounts passed through the window are annexed.

QRMP scheme enables quarterly return filing with monthly tax payments via Invoice Furnishing Facility and payment challan.
The guidance explains that under the QRMP scheme taxpayers below the turnover threshold can opt for quarterly filing of Form GSTR-1 and GSTR-3B while paying tax monthly via a challan in Form GST PMT-06; the optional Invoice Furnishing Facility under Rule 59(2) allows furnishing outward invoice details in the first two months of a quarter to enable recipients to claim input tax credit, with each monthly IFF expiring after its due date in the following month.

Input tax credit fraud prompts arrests under CGST provisions, exposing fictitious firms and use of goods-less invoices.
Arrests followed detection of a network of fictitious firms issuing goods-less invoices to pass on input tax credit and claim improper IGST refunds; officers used data analytics to uncover three related cases in which non-existent firms routed fake ITC to beneficiary firms, leading to criminal charges under CGST provisions and remand to judicial custody, with investigations ongoing and potential for increased identified liabilities and parties.

GST compensation shortfall funding: special borrowing window instalments and GSDP-linked additional borrowing permission provided to States.
The Department of Expenditure released the sixteenth weekly instalment of funds borrowed by the Central Government under a special borrowing window to meet States' GST compensation shortfalls, passing most funds to States and Union Territories with legislatures while five States had no gap; simultaneously the Centre granted additional borrowing permission equivalent to half a percent of GSDP to States choosing the designated option, and a state-wise annexure details permissions and amounts passed through.

Special borrowing window for GST compensation supplies instalments to states and permits additional borrowing to cover revenue shortfalls.
The Government released the 15th weekly instalment under the special borrowing window, with funds raised by the Central Government on behalf of States/UTs passed through to meet the GST compensation shortfall. The financing comprises borrowings through the special window and an additional borrowing permission equal to 0.50% of GSDP granted to States choosing the prescribed option; a state-wise schedule shows amounts allowed and funds passed on, and five States reported no compensation gap.

QRMP scheme: quarterly return filing with monthly tax payments via fixed-sum or self-assessment under simplified GST compliance.
The QRMP scheme allows eligible small taxpayers to file GSTR-1 and GSTR-3B quarterly while paying taxes monthly. Eligibility and frequency are auto-assigned based on aggregate turnover declared in prior GSTR-3B filings and filing timeliness; taxpayers may opt in or out within prescribed selection windows. Payments in the first two months can be made via a system-generated Fixed Sum Method (35% challan) or by Self-Assessment through Form GST PMT-06; IFF is an optional facility to furnish outward supplies early for recipients to claim ITC, and the system auto-populates draft quarterly GSTR-3B and GSTR-2B.

Staggered filing of Form GSTR-3B establishes differential due dates for monthly and quarterly filers from January 2021.
A regulatory amendment mandates staggered filing of Form GSTR-3B from January 2021: monthly filers must file by the 20th of the following month; quarterly filers have state- and union territory-specific due dates-certain southern and western States and specified Union territories by the 22nd of the month following the quarter, and the remaining States and Union territories by the 24th.

Fraudulent input tax credit uncovered, leading to arrest and ongoing investigation into fake invoices and refund abuse.
Arrest relates to alleged large scale fraudulent appropriation and passing on of input tax credit through invoices without actual supply, where the accused, as director/controller of multiple entities, purportedly forged documents, used fictitious suppliers, and passed fake ITC to exporters who monetised it via fraudulent IGST refunds; investigations identify the accused as a central orchestrator and remain ongoing.

Fraudulent availment of input tax credit exposed; arrest recorded and criminal tax investigation continues.
Allegations describe fraudulent availment and passing on of input tax credit through a network of dummy and non existent firms controlled by a single person, with wrongful encashment of credit via the IGST refund mechanism based on billing without goods; documentary evidence and supplier statements are said to connect the individual to the scheme, and arrest and judicial custody were recorded while further investigations continue.

Fake input tax credit schemes exposed: arrests made and a network of shell firms dismantled, investigations continue.
A network of 46 fictitious firms operating since 2017 was identified using data analytics as generating and passing on fake input tax credit. Officers arrested key operators, who confessed to raising fake invoices through the racket; alleged fake invoicing and fake ITC have been quantified and are expected to increase as the ongoing investigation and prosecution under the CGST framework proceed.

Misappropriation of collected GST under GST law led to arrest and judicial remand while investigation continues.
A chartered accountant is alleged to have collected GST from a client, withheld and misappropriated the collected amounts while forging GST challans and returns to conceal non-deposit. Investigating authorities arrested the accused under investigatory provisions, and he was produced before a magistrate and remanded to judicial custody for fourteen days; further investigation continues.