Latest news with #GoM
The Print
5 days ago
- Business
- The Print
State finance ministers' panel discusses ways to curb ITC frauds, sector-specific tax evasion
The GoM also discussed state-specific policy suggestions for boosting revenue, and coordination between central and state tax administrations for plugging GST evasion. The Group of Ministers (GoM) on GST revenue analysis under Goa Chief Minister Pramod Sawant also discussed comparative analysis of pre- and post-GST revenue trends, e-invoicing and IT system enhancements for better traceability. New Delhi, Jul 4 (PTI) A panel of state finance ministers on Friday discussed tax evasions in specific sectors as it mulled over policies to check input tax credit (ITC) fraud which has reached a staggering Rs 2 lakh crore. 'The meeting discussed state-wise revenue trend analysis, analysis of economic and other factors on GST revenue and integration of anti-evasion and compliance tool. The meeting also discussed policy recommendations for revenue augmentation,' Sawant said after chairing the GoM meeting. 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 Rs 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, chaired by Union finance minister and comprising ministers from all states. 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). ITC fraud has been a major pain point for GST officials with fraudsters coming up with new modus operandi to defraud the exchequer. During 2024-25, central and state GST officers have detected 25,009 fake firms involved in fraudulently passing input tax credit (ITC) worth Rs 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 Rs 1.01 lakh crore. A total of Rs 3,107 crore was recovered by way of blocking of ITC, and 316 arrests have been made. PTI JD HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Hindustan Times
5 days ago
- Business
- Hindustan Times
Harpal Cheema bats for GST reforms to benefit agrarian states like Punjab
Finance minister Harpal Singh Cheema on Friday emphasised the need to bring structural changes in the goods and service tax (GST) regime and proposed policy recommendations for revenue augmentation, including food grains under its framework, reducing or nullifying the inverted duty structure, and making e-way bill generation and e-invoicing mandatory. Punjab Finance minister Harpal Singh Cheema during the first meeting of the group of ministers (GoM) on 'Analysis of Revenue from GST' held in New Delhi. (Sourced) Presenting a comprehensive overview of Punjab's revenue generation during the first meeting of the group of ministers (GoM) on 'Analysis of Revenue from GST' held in New Delhi, Cheema also suggested that a unified platform can be developed, giving access to all states and the Central Tax Authority for data analytics and detecting tax evasion and compliance issues. He also flagged the revenue loss the state faced due to the subsumption of various taxes following the implementation of GST in 2017. Cheema said that Punjab, as an agrarian economy, heavily relied on purchase tax and infrastructure development fee (ID fee) on the sale of grains (wheat and rice), collecting ₹3,094 crore in 2015-16, which represented 16.55% of its total tax revenue, and experienced a permanent loss of revenue as a result of subsumption of these taxes. He also pointed out the loss from the subsumption of central sales tax (CST), which previously contributed ₹568 crore to the state's exchequer. He claimed that under the previous VAT regime, Punjab had a higher collection of revenue as compared to the GST regime, expressing concern over a consistent shortfall in GST collection, with actual revenue significantly lower than the projected revenue based on a 14% growth rate on the base year. 'Had GST not been implemented, Punjab's revenue position would have been better, even with a conservative 10% CAGR growth,' he claimed, adding that the state faced a shortfall of ₹47,037 crore since July 1, 2022. The finance minister argued that states dependent on agriculture should be compensated for the permanent loss of revenue due to the subsumption of purchase tax on food grains. He also highlighted a paradoxical situation where major industrial sectors in Punjab, such as agricultural implements, cycle and cycle parts, and hosiery goods, show high gross turnovers but do not exhibit a commensurate increase in GST collection. 'This is largely due to GST being a destination-based consumption tax, leading to revenue flowing out of Punjab through SGST input tax credit adjustments against IGST liability, creating a net outflow of revenue,' he said. Further recommendations included making e-way bills mandatory for evasion-prone commodities irrespective of the threshold, mandatory e-invoicing for B2B supplies for manufacturers and B2C supplies, mandatory mapping of IP addresses with GSTN and E-way bills for tracking fraudulent taxpayers, and the introduction of geo-fencing. He also advocated for the development of a unified AI-based platform for data integration from various government portals for both central and state tax authorities, and mandatory biometric authentication for taxpayers registered before its implementation based on risk profiling. Cheema said that despite efforts in collection efficiency and revenue maximisation, the state faces persistent challenges in revenue generation. Besides Cheema, the GoM has the chief minister of Goa, deputy chief ministers of Bihar, Maharashtra, Telangana, and finance ministers of Andhra Pradesh, Chattisgarh, Gujarat and Tamil Nadu as members. The terms of reference include analysis of state-wise revenue trends, impact of economic and other factors on GST revenue, anti-evasion and compliance tools integration, and policy recommendations for revenue augmentation.
Time of India
6 days ago
- Business
- 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.
Time of India
6 days ago
- Business
- Time of India
State finance ministers' panel discusses ways to curb ITC frauds, sector-specific tax evasion
A panel of state finance ministers convened to address the escalating issue of tax evasion, particularly concerning Input Tax Credit (ITC) fraud, which has reached a staggering Rs 2 lakh crore. The Group of Ministers (GoM) also analyzed revenue trends, e-invoicing, and IT system enhancements. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A panel of state finance ministers on Friday discussed tax evasions in specific sectors as it mulled over policies to check input tax credit (ITC) fraud which has reached a staggering Rs 2 lakh Group of Ministers (GoM) on GST revenue analysis under Goa Chief Minister Pramod Sawant also discussed comparative analysis of pre- and post-GST revenue trends, e-invoicing and IT system enhancements for better GoM also discussed state-specific policy suggestions for boosting revenue, and coordination between central and state tax administrations for plugging GST evasion."The meeting discussed state-wise revenue trend analysis, analysis of economic and other factors on GST revenue and integration of anti-evasion and compliance tool. The meeting also discussed policy recommendations for revenue augmentation," Sawant said after chairing the GoM GoM identified Input Tax Credit (ITC) fraud as a major issue under goods and services tax (GST) and states suggested various measures to prevent said the GoM flagged Rs 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 GoM would meet again soon and thereafter will submit its report to the GST Council , chaired by Union finance minister and comprising ministers from all 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).ITC fraud has been a major pain point for GST officials with fraudsters coming up with new modus operandi to defraud the 2024-25, central and state GST officers have detected 25,009 fake firms involved in fraudulently passing input tax credit (ITC) worth Rs 61,545 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 Rs 1.01 lakh crore. A total of Rs 3,107 crore was recovered by way of blocking of ITC, and 316 arrests have been made.
&w=3840&q=100)
Business Standard
6 days ago
- Business
- Business Standard
Ministerial group on GST discusses curbing ITC frauds, leakages by sector
The GoM on GST revenue analysis under Goa Chief Minister Pramod Sawant met on Friday and discussed sector-specific tax leakages and corrective action to curb over ₹2 lakh crore ITC frauds. 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.)
