Quote on GST Frauds & Regulations: Anshul Mathur, Partner, Lakshmikumaran & Sridharan Attorneys
“As cases of GST fraud mount with several arrests made by DGGI in November itself, the Law Committee of GST Council in its meeting has suggested stringent registration process linked with the trustworthiness of the applicant. The process would involve Aadhaar like registration process with live photos and use of biometrics at banks/ GST Seva Kendras. In case of non-Aadhaar authentication, physical verification and personal identification will be a must. An additional requirement of a furnishing recommendation letter by two reliable taxpayers may also be brought in. Besides this, a portion of tax dues might have to be paid through cash or bank guarantee and not entirely through Input tax credit. The Committee has also recommended the use of Intelligence tool (BIFA) to identify potential defaulters and wipe out fake dealers from the GST system. Although introduction of strict measures to curb issuance of fake invoices appears promising, the same should not create unnecessary hurdles for bona fide dealers. It is to be seen how these suggestions will be placed before GST Council and what changes will be recommended by the Council in the GST provisions.”
