GST evasion uncovered via fake invoices enabling input tax credit and refund fraud; enforcement to be intensified and data-driven.
Detection of extensive GST evasion revealed concentrated tax payment among a tiny fraction of registrants and compliance shortfalls among composition-scheme dealers. Investigations uncovered a recurring modus operandi of generating fake invoices to claim input tax credit and to obtain fraudulent GST refunds, including refunds purportedly tied to non-existent exports. GST intelligence identified substantial evasion in a short period and announced stepped-up data-driven enforcement to curb invoice-based credit and refund fraud and to strengthen compliance.

GST refund processing accelerated through a special administrative fortnight, focusing on sanctioning claims and exporter compliance.
CBIC conducted a Special Refund Fortnight to expedite disposal of pending GST refunds, activating special refund cells, issuing clarifications, and carrying out exporter outreach. Centre and State field formations processed shipping bills and sanctioned IGST and RFD 01A claims while accounting for rejected claims; exporters were reminded to follow correct filing procedures, provide accurate Shipping Bill information, and submit RFD 01A applications to jurisdictional offices for prompt disbursal.

Formalization of economy under GST expands the tax base and strengthens compliance through digitized data sharing.
GST establishes a common, digitized indirect tax framework that promotes formalization of the economy and widening of the tax base by enabling seamless data sharing between central and state administrations, incentivizing previously unregistered agents and documented supply chains where input tax credit claims require verifiable invoices.

Dual GST framework establishes concurrent central and state taxation with a GST Council to coordinate rates and rules.
Introduction of GST establishes a dual GST with CGST and SGST/UTGST and an IGST for inter State supplies and imports; a constitutional amendment and creation of the GST Council govern rates, exemptions, thresholds and harmonisation. The design fixes input tax credit usage rules, destination based taxation, threshold and composition schemes, procedural rules (registration, returns, e way bills) and institutional mechanisms (anti profiteering, advance rulings, appellate tribunal) to effect transition from legacy indirect taxes.

SEZ supply classification: services to SEZs treated as inter State, with zero rating only for authorised, endorsed operations.
Supplies of services such as short term accommodation, conferencing and banqueting to SEZ developers or units are to be treated as inter State supplies. Supplies to SEZ recipients qualify as zero rated only when received for authorised operations with an endorsement by the specified officer of the Zone, enabling suppliers to claim refund of integrated tax paid or unutilised input tax credit. Independent fabric processors performing job work are eligible for refund of unutilised input tax credit under the inverted duty provision because their output is a service, even if the input fabrics are covered by the restrictive notification.

Change of authorized signatory contact details: jurisdictional tax officer may update email and mobile to restore taxpayer access.
Change of contact details permits the jurisdictional tax officer to update an authorized signatory's email and mobile on the GST Portal after verifying identity and validating business details. The officer must confirm Stakeholder or Authorized Signatory status, upload supporting proof, enter new contact information, and reset the GSTIN password so that username and temporary password are sent to the updated email for the taxpayer's first-time login and password change.

GST refund extension: exporters urged to submit IGST payment proof and supporting documents to jurisdictional tax offices promptly.
Extension of a special GST refund drive to clear pending refund claims filed on or before 30.04.2018; exporters with refunds held for IGST short payment must pay the shortfall and submit proof - small exporters may provide self certified proof to the Customs office at the port of export, others must provide a Chartered Accountant's certificate with proof. FORM GST RFD 01A and all supporting documents must be physically submitted to the jurisdictional tax office for processing; ICEGATE registration is recommended to track refunds.

GST treatment of financial services clarified: place of supply, ITC allocation, and taxation of ancillary fees and charges.
Banks, insurers and stock brokers must follow GST rules on registration, place of business and time of supply: ATMs and third party service points are not places of business; transitional taxation for services up to 30 June 2017 depends on invoice/payment dates; invoices for pre July supplies issued after 1 July 2017 attract GST unless advance payment fixed the earlier tax point. Consolidated invoicing and non serial documents are permitted with identification numbers; self invoices and payment vouchers are required where recipient is liable. ITC may be apportioned via ISD, the 50% optional restriction applies per registration, reversals for capital goods are proportional to credit availed, and securities/interest represented transactions are generally exempt while fees and charges remain taxable.

GST revenue collection exceeds last fiscal year monthly average; central and state shares settled and compensation paid.
Total gross GST revenue for May 2018 exceeded the previous financial year's monthly average, with receipts itemised into CGST, SGST, IGST (including imports) and Cess, and GSTR 3B filings reported; post settlement shares for Centre and States are stated and GST compensation payments to States for the fiscal period are noted.

e-Way Bill system rollout for intra-State goods movement expands to remaining states, requiring traders to comply with e-Way Bill rules.
The e-Way Bill system for intra-State movement will be rolled out on a phased schedule for remaining states, with nationwide implementation by the stated deadline; trade must comply with e-Way Bill rules, seek guidance from tax authorities, and use the prescribed grievance redressal mechanism under the GST rules.

GST refund facilitation: special drive to clear pending refund claims and integrate GSTN with Customs for automatic processing.
A Special Refund Fortnight directs Central, State and Customs authorities to clear GST refund claims received on or before 30.04.2018, covering IGST on exports and unutilized input tax credit; GSTN-held cases misclassified as domestic supplies will be transmitted to Customs EDI for automatic processing where no exporter errors exist. CBIC Circular No.12/2018 implements the transmission mechanism and Circular No.45/19/2018-GST clarifies refunds for ISDs, composition dealers, exports of services, SEZ supplies, LUT requirements and Rule 96(10) restrictions. FORM GST RFD-01A plus supporting documents must be submitted to the jurisdictional tax office; claimants may approach either Centre or State if jurisdiction is not defined. ICEGATE registration is recommended to track IGST refund status.

GST exemption for agricultural support services continues; leasing farmland remains GST-exempt and agriculturists need not register.
GST exemption continues to apply to support services to agriculture, forestry, fishing and animal husbandry, including renting or leasing of vacant land with or without incidental structures; leasing of land by farmers, including on batai (sharecropping), is GST-exempt. Agriculturists - individuals or HUFs cultivating land by own, family, servant or supervised hired labour - are exempted from GST registration.

e-Way Bill system expanded for intra-State movement; businesses must register, comply and use grievance procedures.
Roll-out of the e-Way Bill system for intra-State movement of goods is expanded to additional States and Union Territories effective 25 May 2018; traders and transporters must register/enrol on the e-Way Bill portal to generate required documents, follow the procedural provisions to ensure compliance, and may approach their respective tax authorities for guidance. Grievances concerning the e-Way Bill mechanism are to be addressed under rule 138D of the Central/State GST Rules, 2017.

Wrongful availment of input tax credit leads to arrest for fraudulent invoices and ongoing GST investigation.
Arrest of a father-son duo for alleged fraudulent issuance of input tax credit invoices after searches recovered incriminating documents; they were arrested and remanded following action by the Central Tax, GST Delhi East Commissionerate. The matter is being pursued under the GST penal provisions that treat issuance of invoices without supply and wrongful availment of input tax credit as cognizable and non-bailable offences when the amount involved exceeds the statutory threshold, and investigations may uncover further fake firms and increased evasion.

Appellate authority for advance rulings urged to be constituted to enable appeals against AAR determinations swiftly.
States and the Centre are urged to expedite constitution of Appellate Authorities for Advance Ruling (AAAR) so aggrieved parties can appeal AAR orders; several states have notified AAARs but members are unappointed. The statutory scheme allows time limited appeals from AAR orders with a mandated period for AAAR decision, and the prescribed two member composition of central and state tax officers has raised concerns about imbalance and lack of legal representation.

Extension of GST return filing deadline for GSTR-3B due to technical issues; system maintenance arranged.
Extension of the last date for filing FORM GSTR-3B for April 2018 has been granted for two days to address taxpayer technical issues; emergency maintenance is being carried out on the filing system and a notification implementing the extension will be published.

e-Way Bill system expansion to intra-State movement in additional states enables broader single nationwide e-Way Bill framework.
Roll-out of the e-Way Bill system for intra-State movement extends the electronic consignment-tracking framework under GST to Assam and Rajasthan with mid-May implementation; taxpayers, trade, industry and transporters in these jurisdictions are directed to register/enrol on the central e-Way Bill portal to generate required documentation, supporting facilitation of goods transport and progression toward a unified national e-Way Bill regime.

Dual GST framework enables concurrent Centre State taxation on supplies with IGST for inter State commerce and harmonised rates.
A constitutional reform created a dual GST regime with concurrent Centre and State levies on supplies and an Integrated GST for inter State trade and imports; a statutory Goods and Services Tax Council recommends rates, exemptions, thresholds and operational rules. The design subsumes multiple pre existing indirect taxes, establishes non fungible CGST and SGST input tax credit streams with specified cross utilisation via IGST, prescribes periodic fiscal settlement mechanisms, and provides for electronic filing, e way bills, anti profiteering measures, transitional provisions, and administrative allocations between Centre and States.

Taxpayer profiling for fraud analytics to detect evasion and recommend measures while enforcing strict data safeguards.
GSTN has invited bids to engage a private firm to build a Fraud Analytics System for 360-degree taxpayer identity and risk profiling by integrating GST registration, returns, e-way bill and external agency data. The six-year contractor will deliver risk scores, detect evasion-prone activity, recommend measures to prevent revenue leakage, support revenue forecasting and may propose legal or procedural changes; strict bidder eligibility, data storage, onsite segregation, device restrictions and confidentiality measures are mandated, and Infosys is barred from bidding to avoid conflict of interest.

Incentivizing digital payments: ministerial group to evaluate GST measures, while a separate group reviews sugar cess imposition.
Two Group of Ministers were constituted to review GST policy: one to evaluate measures to incentivize digital payments in the GST regime, and the other to examine the imposition of a cess on sugar under GST; each group comprises state finance or related ministers and must submit formal reports within a short prescribed timeframe to inform further GST Council decision-making.