Finmin move to catch fake GST bills to hit genuine taxpayers too: industry

Says ministry's new curbs will impact businesses that usually have accumulated credits, as they will have to discharge output tax liability in cash instead of available credit balance

The finance ministry's move to tighten the noose on entities that have been fraudulently taking input tax credit under the goods and services tax (GST) system has invited the ire of traders and tax experts. Basically, the Centre has inserted a rule under which businesses with a monthly turnover of over Rs 50 lakh will now have to mandatorily pay at least one per cent of their GST liability through cash ledger, starting from this month.

Also, for missing invoices, businesses can now claim input tax credit on no more than 5 per cent of the amount, against 10 per cent