- Rs. 20,000 crores of tax evasion happened during the fiscal year April-Feb FY’19
- The tax officers have detected fake invoice of Rs. 1,500 crores
- Central Board of Indirect Taxes and Customs department will have a meeting with the representatives of the real estate sector
- Rs. 10,000 crores GST evasion has been recovered
The Indian Government has detected that around Rs. 20,000 crores of tax evasion happened during the fiscal year April-Feb FY’19. The Central Board of Indirect Taxes and Customs – the department will have a meeting with the representatives of the real estate sector to understand the hurdles they have post reduction in Goods and Services Tax (GST) rates.
The Council of GST Chairman, Finance Minister Arun Jaitley and comprising state counterparts had decided to cut tax rates on the under – construction apartments and affordable housing to 5% and 1% respectively, but the builders will not be able to claim for the taxes paid on inputs like steel, cement, etc. Earlier GST rates on under-construction apartments were 12% and on affordable housing was 8% with the input tax credit.
The Real Estate sector demanded giving relief to builders of under – construction flats that are already built to move in but are not yet sold to buyers. On this, the Central Board of Indirect Taxes and Customs member John Joseph added that they need to raise this issue with the urban development ministry.
The GST evasion that was detected between April 2018 – February 2019 worth Rs. 20,000 crores of that Rs. 10,000 crores have been recovered. The tax officers have detected fake invoice of Rs. 1,500 crore that was used for illegally claiming GST credit worth Rs. 75 crores. The team has recovered Rs. 25 crores out of it and rest investigation is going on it.
The government will take more steps and precautions to check frauds and will increase compliance because only 5-10 % of the businesses are ‘black sheep’ and is a disgrace that brings a bad name to the real estate industry for which the genuine businesses do not have to suffer.
The government has been increasing compliance for 1.2 crores registered businesses and trying to be dynamic in justifying tax rates since the time GST had been rolled out on July 1, 2017.
At present, GST has 4 – tier slab of 5, 12, 18 and 28 percent, while the essential is zero-rated.
- Govt detects Rs 20,000 cr GST evasion in April-February FY19
- GST evasion of Rs 20,000 crore detected in April-February FY’19
- Govt detects Rs 20,000 cr GST evasion in April-Feb FY’19
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