With the hotline being continuously in beeping mode with a surge of fake invoice based GST frauds, the Government is now considering legal amendments as well as tightening the registration processes for the new businesses. Such a step has been taken with the hope of the reversal of technology-driven processes for indirect tax regime.
A meeting has been hurriedly called upon where the GST law committee will consider the changes on Wednesday where about 1180 enterprises out of 1.2 crore GST payers were identified as allegedly being involved in fake invoice racket cases. Also, around 350 cases were recorded in the last five days.
A GST official explained how such instances of fraud have occurred in the past that involved companies, amounting to a few thousand. But the Government kind of sidelined it saying that technology was being deployed to track the offenders. In this case, the tax bureaucracy y seemingly hit back at the role of the government.
The Government of India is also rethinking in strengthening the provisions that ultimately related to the suspension of GST registration to make the process smoother and faster.