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GST Revenue collection for August 2021₹ 1,12,020 crore of gross GST revenue collected in August

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Ministry of Finance Press Release dated 01 Sept 2021

The gross GST revenue collected in the month of August 2021 is ₹ 1,12,020 crore of which CGST is ₹ 20,522 crore, SGST is ₹ 26,605 crore, IGST is ₹ 56,247 crore (including ₹ 26,884 crore collected on import of goods) and Cess is ₹ 8,646 crore (including ₹ 646 crore collected on import of goods).

The government has settled ₹ 23,043 crore to CGST and ₹ 19,139 crore to SGST from IGST as regular settlement. In addition, Centre has also settled ₹ 24,000 crore as IGST ad-hoc settlement in the ratio of 50:50 between Centre and States/UTs. The total revenue of Centre and the States after regular and ad-hoc settlements in the month of August’ 2021 is ₹ 55,565 crore for CGST and ₹ 57,744 crore for the SGST.

The revenues for the month of August 2021 are 30% higher than the GST revenues in the same month last year. During the month, the revenues from domestic transaction (including import of services) are 27% higher than the revenues from these sources during the same month last year. Even as compared to the August revenues in 2019-20 of ₹ 98,202 crore, this is a growth of 14%.

GST collection, after posting above Rs. 1 lakh crore mark for nine months in a row, dropped below Rs. 1 lakh crore in June 2021 due to the second wave of covid. With the easing out of COVID restrictions, GST collection for July and August 2021 have again crossed ₹1 lakh crore, which clearly indicates that the economy is recovering at a fast pace. Coupled with economic growth, anti-evasion activities, especially action against fake billers have also been contributing to the enhanced GST collections. The robust GST revenues are likely to continue in the coming months too.

Extension of closing date of late fee amnesty scheme and time limit for filing of application for revocation of cancellation of registration under GST Act (GST notification 33/2021,34/2021 dated 29 Aug 2021)

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The Government, vide Notification No. 19/2021- Central Tax, dated 01.06.2021, had provided relief to the taxpayers by reducing / waiving late fee for non-furnishing FORM GSTR-3B for the tax periods from July, 2017 to April, 2021, if the returns for these tax periods are furnished between 01.06.2021 to 31.08.2021.  The last date to avail benefit of the late fee amnesty scheme, has now been extended from existing 31.08.2021 to 30.11.2021. [Refer Notification No. 33/2021- Central Tax, dated 29.08.2021].

Based on the multiple representations received, Government has also extended the timelines for filing of application for revocation of cancellation of registration to 30.09.2021, where the due date of filing of application for revocation of cancellation of registration falls between 01.03.2020 to 31.08.2021. The extension would be applicable only in those cases where registrations have been cancelled under clause (b) or clause (c) of sub-section (2) of section 29 of the CGST Act. [Refer Notification No. 34/2021- Central Tax, dated 29.08.2021].

The filing of FORM GSTR-3B and FORM GSTR-1/ IFF by companies using electronic verification code (EVC), instead of Digital Signature certificate (DSC) has already been enabled for the period from 27.04.2021 to 31.08.2021. This has been further extended to 31st October, 2021. [Refer Notification No. 32/2021- Central Tax, dated 29.08.2021].

The extension of the closing date of late fee amnesty scheme and extension of time limit for filing of application for revocation of cancellation of registration will benefit a large number of taxpayers, specially small taxpayers, who could not file their returns in time due to various reasons, mainly because of difficulties caused by COVID-19 pandemic, and whose registrations were cancelled due to the same. Taxpayers are requested to avail the benefit of these extensions at the earliest to avoid last minute rush.

Advisory on HSN and GSTR-1 Filing (GST Update 27 Aug 2021)

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GST Portal 26/08/2021

1.In accordance with Notification No. 78/2020 – Central Tax, dated October 15, 2020, taxpayers need to declare Harmonised System of Nomenclature (HSN) Code of Goods and Services supplied by them on raising of tax invoices, with effect from 1st April, 2021 on the below mentioned lines.S.NoAggregate Turnover in the preceding Financial YearNumber of Digits of HSN Code to be reported in GSTR-11Upto Rs. 5 crores42Above Rs. 5 crores6

2. It has been reported by few taxpayers that HSN used by them for reporting in GSTR-1 is not available in the table 12 HSN drop-down. They have further stated that they are facing issues in adding the required HSN details in table -12 and filing of statement of outward supplies in form GSTR-1 of July 2021. Further, in some JSON files, the HSN field is coming as blank from the offline tool, along with other errors as mentioned below:

1)Processed with Error, In Progress or Received but pending

2)Duplicate Invoice Number found in payload please correct

3. To view the detailed advisory on the action to be taken by the taxpayers to resolve above issues, click on: https://tutorial.gst.gov.in/downloads/news/advisoryonhsnandgstr1.pdfThanking you ,
Team GSTN

2 more arrested by DGGI Gurugram Unit for input tax credit fraud (MOF Press Release dated 25 Aug 2021)

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The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana, has earlier busted a case wherein total fake ITC of  Rs 176 crore has been fraudulently passed on by Sh. Sanjay Goel, Prop of M/s. Redamancy World, and Sh. Deepak Sharma, the de–facto controller of 8 non-existent firms. Accordingly Sh. Sanjay Goel, Prop. of M/s. Redamancy World and Sh. Deepak Sharma has been already arrested by this office, in the matter. On further investigation role of two more key persons, Sh Manish Modi and Sh. Gaurav Agarwal has also been surfaced.

Based on details revealed by further investigation this office has arrested, Sh Manish Modi, Chartered Accountant, resident of Pitam Pura, New Delhi, on charges of creation of running racket of fake firm in order to fraudulently pass on fake Input Tax Credit (ITC), without actual supply of goods or services. It was found that Sh. Manish Modi is managing/controlling  fake firms M/s. Nivaran Enterprises, and M/s Panchwati Enterprises through which he has fraudulently passed on fake ITC to the tune of Rs.  36 crore. Further he has also been found in possession of incriminating evidences indicating many more such firms might be controlled/managed by him for similar purpose, further investigation for same is under way.

Name of Sh. Gaurav Agarwal, Partner of M/s. Agarwal & Company (authorized dealer of ITC) has also emerged as another key person involved in the instant racket of fraud ITC. He has fraudulently passed on fake Input Tax Credit (ITC) amounting to Rs 15 crore (including GST and Cess), thus has been arrested by this office on similar charges. 

Accordingly, Shri Manish Modi and Sh. Gaurav Agarwal were arrested on 23.08.2021 and produced before, Duty MM Delhi, who ordered judicial custody for 14 days. Fake ITC of more than Rs 36 crore and 15 crore, respectively, fraudulently passed on by two persons.

Further investigations in the matter are under progress.

2 held by CGST Officials for input tax credit fraud of more than Rs 10 crore

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Ministry of Finance Press Release dated 11th Aug 2021

The CGST Commissionerate, Faridabad, Haryana has arrested two Directors of M/s. F2C Wellness Pvt. Ltd.,  Faridabad on charges of illegally availing and passing on input tax credit (ITC) by issuance of invoices without supply of goods.

On the basis of the investigation conducted till date, the said firm showed purchase of cement from non-existent concern namely M/s Vishal Enterprises, Gautam Buddha Nagar using fraudulent invoices not backed by concomitant supply of goods, showing fake transport records. In this way, M/s. F2C Wellness Pvt. Ltd., Faridabad had passed fraudulent ITC of Rs.  10.33 crore on invoices without accompanying goods to various end users.

The investigation spanned multiple locations in Delhi NCR area and based on documentary evidence and statements recorded, it was ascertained that Shri Paras Arora and Shri Devpal Soni, both directors of the said firm, were key players in the network of companies availing fraudulent  ITC.

Accordingly, Shri Paras Arora and Shri Devpal Soni, have been arrested on 10.08.2021 and produced before, the Ld. Chief Judicial Magistrate, Faridabad, who has sent them to judicial custody for 14 days. A total fraudulent ITC of Rs 10.33 crore has thus been passed/availed by the said firm.

Further investigation in the matter is under progress.

CGST authorities bust input tax credit fraud of more than Rs 31,000 crore involving more than 7,200 cases in FY 2020-21

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The Goods and Services Tax authorities have unearthed over Rs 31,000 crore of tax fraud committed by misuse of input tax credit (ITC) provision under the Goods and Services Tax (GST) regime during the financial year 2020-21 and booked more than 7,200 cases involving fake ITC. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in Rajya Sabha today.

Giving details, the Minister stated Input Tax Credit (ITC) fraud detected by CGST formations under Central Board of Indirect Taxes & Customs (CBIC) as following:

S. No.

Period

No. of Cases

Quantum involved

(in Rs. crore)

1

2020-21

7,268

31,233.40

The Minister stated that the Government has taken many steps to prevent such frauds, such as:

  • Introduction of AADHAR authentication for processing of new registration application;
  • Facility to verify cancelled / existing registrations of the applicants seeking new registrations;
  • Provisions to suspend / cancel registration of taxpayers found to the adverse notice of the department;
  • Bulk suspension of registration by GSTN based on business intelligence and further follow up of the same by the CBIC;
  • Additional grounds for cancellation of registration have been introduced where there is mismatch between FORM GSTR1 and FORM GSTR 3B (Rule 21) of CGST Act, 2017, etc.;
  • To prevent fake dealers and shell companies to pass on fake credit, without filing their GSTR3B returns and paying taxes, a provision has been made to block furnishing of outward supply statement in FORM GSTR-1 by a taxpayer, if 2 or more GSTR 3B returns are not filed by the said taxpayer.
  • E-invoices have been made mandatory for all B2B transaction with turnover above Rs. 50 crore.
  • Generation of E-way bill by those taxpayers who have not furnished return for consecutive period of two month has been restricted.
  • Blocking of ITC Credit under Rule 86A of CGST Act, 2017, was introduced if the proper officer has reason to believe that ITC has been availed fraudulently.

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Ministry of Finance Press Release dated 03 August 2021

GST authorities recover more than Rs 1,900 crore in tax evasion in FY 2021-22 (upto June 2021)

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The interface for the taxpayers is on a digital platform and software-based, to be used for payment of tax and to comply with the requirements of law and procedure by taxpayers. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in Rajya Sabha today.

Giving details of total tax evasion detected in GST in last three years, the Minister stated:

Period

No.      of

Cases

Detection

(In Rs. Cr.)

Recovery

(In Rs. Cr.)

2019-20

10657

40853.27

18464.07

2020-21

12596

49383.96

12235.00

2021-22 (upto June 21)

1580

7421.27

1920.20

Elaborating further, the Minister stated that, however, tax evaders are known to commit fraud even on electronic platforms by way of mis-representation of facts like furnishing of fake credentials at the time of registration; by indulging in raising fake invoice to avail under Input Tax Credits; mis-declaration of classification etc.

The Minister stated that evasion may be committed intentionally and at times non-payment of tax may happen due to human error. However, no evasion of tax has been reported due to failure in the CBIC back-end system.

Enumerating the steps taken to prevent tax-evasion, the Minister stated that various validations have been built in GSTN/CBIC system to weed out tax- evaders, such as:

  • Introduction of AADHAR authentication for processing of new registration application. Applicants not opting for Aadhaar authentication or failing authentication are subjected to physical verification of the Principal Place of Business before grant of registration;
  • Facility to verify cancelled / existing registrations of the applicants seeking new registrations;
  • Provisions to suspend / cancel registration of taxpayers found to the adverse notice of the department;
  • Bulk suspension of registration by GSTN based on business intelligence and further follow up of the same by the CBIC;
  • Bulk cancellation of registration of taxpayers who failed to file GSTR3B returns for six or more consecutive months;
  • Blocking of ITC credit;
  • Facility to verify ITC through generation of GSTR2A.

Ministry of Finance Press Release dated 03 Aug 2021

GST Revenue collection for July 2021 : Rs. 1,16,393 crore gross GST revenue collected in July

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The gross GST revenue collected in the month of July 2021 is ₹ 1,16,393 crore of which CGST is ₹ 22,197 crore, SGST is ₹ 28,541 crore, IGST is ₹ 57,864 crore (including ₹ 27,900 crore collected on import of goods) and Cess is ₹ 7,790 crore (including ₹ 815 crore collected on import of goods).The above figure includes GST collection received from GSTR-3B returns filed between 1st July 2021 to 31st July2021 as well as IGST and cess collected from imports for the same period.

The GST collection for the returns filed between 1st July to 5th July2021 of ₹ 4,937 crore had also been included in the GST collectionin the press note for the month of June2021since taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed return filing for 15 days for the return filing month June21 for the taxpayers with the aggregate turnover uptoRs. 5 crore in the wake of covid pandemic second wave.

The government has settled ₹ 28,087 crore to CGST and ₹ 24100 crore to SGST from IGST as regular settlement. The total revenue of Centre and the States after regular settlement in the month of July’ 2021 is ₹ 50284 crore for CGST and ₹ 52641 crore for the SGST.

The revenues for the month of July 2021 are 33% higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 36% higher and the revenues from domestic transaction (including import of services) are 32% higher than the revenues from these sources during the same month last year.

GST collection, after posting above Rs. 1 lakh crore mark for eight months in a row, dropped below Rs. 1 lakh crore in June 2021 as the collections during the month of June 2021 predominantly related to the month of May 2021 and during May2021, most of the States/UTs were under either complete or partial lock down due to COVID. With the easing out of COVID restrictions, GST collection for July2021 has again crossed₹1 lakh crore, which clearly indicates that the economy is recovering at a fastpace.The robust GST revenues are likely to continue in the coming months too.

Ministry of Finance Press Release dated 01 Aug 2021