&w=3840&q=100)
Ministerial group on GST discusses curbing ITC frauds, leakages by sector
The GoM also discussed comparative analysis of pre- and post-GST revenue trends, e-invoicing and IT system enhancements for better traceability.
The GoM also discussed state-specific policy suggestions for boosting revenue, and coordination between central and state tax administrations for plugging GST evasion.
"Chaired a meeting of the Group of Ministers (GoM) on GST Revenue Analysis to review state-wise revenue trends and identify actionable strategies for improved GST collection," Sawant said in post on X.
The GoM identified Input Tax Credit (ITC) fraud as a major issue under goods and services tax (GST) and states suggested various measures to prevent it. Officials said the GoM flagged ₹2 lakh crore of ITC fraud over the past years, with states like Gujarat, Telangana, and Rajasthan making presentations on best practices for GST revenue augmentation.
The GoM would meet again soon and thereafter will submit its report to the GST Council, officials said.
In March, the GST Council had reconstituted GoM on 'Analysis of Revenue from GST'. Chaired by Sawant, the GoM had nine members, including from Bihar (Samrat Chaudhary), Chhattisgarh (O P Choudhary), Gujarat (Kanubhai Desai), Andhra Pradesh (P Keshav), Maharashtra (Ajit Pawar), Punjab (Harpal Singh Cheema), Tamil Nadu (Thangam Thennarasu) and Telangana (M B Vikramarka).
During 2024-25, central and state GST officers have detected 25,009 fake firms involved in fraudulently passing input tax credit (ITC) worth ₹61,545 crore.
As per data on ITC frauds unearthed by central and state GST officers, over the two years 2023-24 and 2024-25, a total of 42,140 fake firms were detected, which were involved in fraudulently generating ITC of over₹ 1.01 lakh crore. A total of ₹3,107 crore was recovered by way of blocking of ITC, and 316 arrests have been made.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
GoM on GST meets to take up falling mop up, curb fraud
A Group of Ministers (GoM) convened to address declining GST revenue in major states and combat input credit frauds, which have caused significant losses. The GoM is considering technology-driven solutions, including AI-enabled monitoring, to enhance GST collection and curb fraudulent practices. Concerns were raised about the slow growth and decline in collections in states like Maharashtra, Karnataka, and Uttar Pradesh. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: A Group of Ministers (GoM) on goods and services tax (GST) revenue analysis met Friday to discuss falling collections trends in some large states and measures to curb input credit frauds and fake invoices which has resulted in revenue loss worth Rs 2 lakh crore over GoM, chaired by Goa Chief Minister Pramod Sawant, will meet again to decide detailed and technology based measures to curb fraudulent practices ahead of the next GST council meeting."Chaired a meeting of the Group of Ministers (GoM) on GST Revenue Analysis to review state-wise revenue trends and identify actionable strategies for improved GST collection," Sawant said in a post on the social media portal GoM also expressed concerns over the falling GST collections trend in some of the larger states in the recent few months and asked for the specific reason for the slow growth to take state specific trends into account, people aware of the discussion the month of June GST collections grew at 6.2%, the slowest in the past four trend reflected single-digit growth in major states like Maharashtra (6%), Karnataka (8%) and Tamil Nadu (4%). Gujarat and Uttar Pradesh showed a decline in monthly collections by 1% and 4%, meeting also discussed technology-driven solutions like AI-enabled monitoring tools.
The Hindu
2 hours ago
- The Hindu
Cease the cess: on the GST and reforms
The eighth anniversary of the Goods and Services Tax (GST) in India, on July 1, coincided with the poorest tax collections the indirect tax system has seen in some time, highlighting the need for structural changes in the system. The latest GST collections stood at ₹1.85 lakh crore in June 2025, the lowest in four months. This amount was just 6.2% higher than the collections in June 2024, the slowest growth rate in four years. Looking past the gross collections, the data show that once refunds are accounted for, the growth in the government's actual collections was just 3.3%. Further, the revenue from domestic transactions, excluding imports, was an anaemic 4.6% higher than in June last year — barely faster than the average rate of inflation since then. Being a consumption tax, a dip in GST collections reflects a dip in economic activity. But it also reflects inefficiencies in the system, which must now suitably be addressed eight years on. A common demand is for fuel to be included in GST. There is, however, strong resistance to this from State governments, since fuel and alcohol are the few sources of revenue States have with them that are independent of the Centre. However, this cannot be reason enough to perpetually keep these items excluded. It is 'one nation, one tax' after all, and it is high time that the goal was achieved in full. As for the revenue hit to States, the Centre must accede to their request for a higher share in central taxes. The Centre must also stop increasingly relying on non-shareable cesses for its revenue. For their part, States must resist the temptation to use this higher amount on election-oriented untargeted freebies. Trust goes two ways. The other popular reform is a reduction in the number of GST rates. This, too, is overdue, and the GST Council's fitment and rate-setting committees are examining the issue. Connected to this is the question of what is to be done with the GST Compensation Cess, which is levied over and above the 28% slab. It was originally intended to compensate States for any losses arising out of GST implementation for a period of five years. It was then extended until March 2026 to repay the loan taken by the Centre to pay this compensation since the COVID-19 pandemic had disrupted revenues. The Centre should avoid the temptation to subsume this cess into the broader GST rates. Instead, with its job done, the cess must be removed. Taxation is not just a covenant between the Centre and the States. It is also one with the people. Removing a cess that is no longer needed will not only garner public praise but could also spur some sorely needed urban consumption.
Time of India
3 hours ago
- Time of India
MPs to jointly push for central fin aid
T'puram: The state will move forward with legislation to address the rising human-wildlife conflict, the state govt informed MPs at a high-level meeting convened by chief minister Pinarayi Vijayan on Friday. A draft bill is currently under consideration by the state's law department, it was revealed in the meeting. The MPs' conference, held ahead of the upcoming monsoon session of Parliament, deliberated on a range of pressing issues concerning the state from disaster relief and infrastructure development to financial concerns and environmental conservation. A key decision at the meeting was to take a united stand for the approval of central financial assistance based on the Post-Disaster Need Assessment submitted by the state. The assessment seeks Rs 2,221.10cr for Meppadi in Wayanad district and Rs 98.10cr for Vilangad in Kozhikode, both severely affected by past natural calamities. The MPs also agreed to jointly press the Centre to reinstate Section 13 of the Disaster Management Act, which was previously removed, and to seek urgent amendments to Section 11 of the Wildlife Protection Act. These changes would empower state govts to grant region-specific relaxations based on local needs and help secure central compensation for wildlife-related damages. On railway development, the CM urged the MPs to follow up on the memorandum he had submitted directly to the Union Railways minister. Specific demands include approval for the Thalassery–Mysuru and Nilambur–Nanjangud rail lines, a new line from Kanhangad–Panathur–Kaniyur, advancement of the Angamaly–Erumeli–Sabarimala railway project, and sanctioning of third and fourth railway lines in the state. The CM also called for allocation of funds to extend the Kochi Metro from SN Junction to Tripunithura Metro station. Vijayan underlined the need for coordinated intervention of MPs on financial matters. He flagged the reduction in Kerala's borrowing limit under the guarantee redemption fund, the Rs 965cr shortfall in IGST settlement, and the need to raise the borrowing ceiling to 3.5% of the state's GSDP. He urged the Centre to exempt loans taken by KIIFB and the state pension company from the borrowing cap and allow additional borrowing equivalent to the state's share in the Jal Jeevan Mission outside the current borrowing limit. The meeting also discussed proposals to link the Global City component with the GIFT City (Global Industrial Finance and Trade City) initiative and to seek timely central support for completing connectivity infrastructure. The MPs agreed on the importance of securing viability gap funding for the establishment of logistics parks under the Kochi–Bengaluru industrial corridor. Health-related demands raised at the meeting included the need to expedite the allotment of an AIIMS in Kerala, increase the premium under the Vay Vandana Yojana pension scheme and release the arrears due to the state under the National Health Mission. There was also a demand to grant official health worker status to ASHAs, who form the backbone of the state's community health system. Other crucial issues discussed included retaining the BrahMos missile production facility in Kerala, granting 'point of call' clearance to foreign airlines operating out of Kannur International Airport and the ongoing development of national highways across the state. The MPs also sought upgrades for the Kottapuram–Kozhikode stretch of National Waterway-3, declared as an extension of the national waterway, to meet national standards.
