Bengal FM wrote that he had forewarned that giving up invoice matching would lead to widespread tax frauds and hawala transactions.
NEW DELHI: West Bengal finance minister Amit Mitra has sought a probe into rampant goods and services tax evasion. In a letter to finance minister Nirmala Sitharaman, dated August 27, Mitra also sought the introduction of the new return system with invoice matching by October for large taxpayers and by January, 2020, for all tax payers.
Mitra further wrote that he had forewarned that giving up invoice matching would lead to widespread tax frauds and hawala transactions.
Citing the Minister of State for Finance Anurag Thakur’s response in Rajya Sabha, Mitra said that the fraud worth Rs 45,682 crore was not only alarming, but also understated. The figure did not include SGST frauds, and should they be included, the figure would cross Rs 1lakh crore, Mitra claimed.
“At the time of GST introduction, neither the statutory forms including GST Return were ready, nor the IT system was tested,” he said. The widespread tax fraud took place due to lack of veracity of claimed GST via input tax credit, Mitra said.
Source : https://economictimes.indiatimes.com/news/economy/policy/bring-gstr-with-invoice-matching-for-all-by-january-bengal-fm/articleshow/70883013.cms