Claiming input tax credit in the absence of valid invoices can be a non-bailable, and cognizable offence. This move has come after many taxpayers registered under GST fraudulently claimed ITC and reduce their GST liability. According to a report these racketeers ‘only issue invoices without actually supplying any goods or services. however, such taxes were never paid. The new provisions in Section 132 of the CGST Act will empower authorities to levy penalty on a person if it is found that there is a false entry or omission of any details relevant for computation of total income in the books of accounts maintained by the individual. The Budget document further added that the new changes will be effective from April 1, 2020
Budget 2020: Fraudulently availing of GST input credit could be non-bailable, cognizable offence
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