GST Council may crack down on fraudulent invoices, input tax credit refunds

The law committee has proposed blocking of input tax credit for errant businesses "with the intent to safeguard government revenue''

The Goods and Services Tax (GST) Council, in its meeting on Wednesday, is expected to take up the issue of fake invoices and fraudulent input tax credit (ITC) refunds. In the backdrop of a severe revenue shortfall, the Council would examine several enforcement measures such as blocking input tax credit, imposing penalties and even arrest in the case of fake invoices. Besides discussing revenue augmenting measures, the Council, chaired by Union Finance Minister Nirmala Sitharaman, will also deliberate on the merits of setting up a public grievance body to reduce litigation. 

The law committee has proposed blocking of input tax credit