Govt concerned over fake invoicing in B2B trade impacting GST collections

The government on Friday raised concerns over fake invoices being generated in the business-to-business (B2B) segment which is impacting GST collections.

This under-reporting has become a challenge for the government, Minister of State for Finance and Corporate Affairs Anurag Thakur said.

"It is not only the government, it is also the industry which also has to play an important role. In GST, we are seeing a lot of fake invoicing and it is from business to business," Thakur said at the annual session of Consumer Electronics and Appliances Manufacturers Association.

"B2C is the second chapter. In B2B, we see lot of fake invoices, which is a challenge to increase the GST collection," he added.

The minister also assured the industry that the Centre would bring more transparency in the system, citing the recent faceless assessment of income tax started by the government.

"Many industry leaders talked about the harassments. We have talked about the faceless assessment in India and within a month from Vijayadashami this year, we have started and given 58,322 cases for the first set of assessment," he said.

"I promise you more changes in the system, which would be transparent and more accountability. We would be more than happy to (help) the industry to grow, to make more transparent system in place and I am sure you can also help us by bringing more investments," the minister added.

He also asked the industry to contribute towards making India a USD 5 trillion economy.

"Real estate to automobile to manufacturing, we have taken landmark decisions and will continue to support sectors across the spectrum to achieve the target of a USD 5 trillion economy," said Thakur.

Meanwhile, Thakur also asked the appliances and consumer electronics industry to tackle e-waste generated from products.

"India generates 1.85 million tonnes of e-waste annually. The role of companies does not end when a product is sold. Corporates have a responsibility towards tackling the issue of e-waste which is a global challenge," the minister said.