Central Board of Indirect Taxes and Customs (CBITC) Member (Investigation) John Joseph has revealed that GST evasion amounting to around Rs 20,000 crore has been detected by the government between April 2018 and February 2019, of which approximately Rs 10,000 crore has been recovered, reports The Economic Times.
Joseph added that further steps would be taken to combat GST fraud and ensure compliance. He stated that a meeting of his department with the representatives from the real estate sector is on the cards to discuss transition issues faced in the industry after GST rates were cut earlier this week by the GST Council.
The council led by Finance Minister Arun Jaitley reduced the GST rate for under-construction residential properties to five per cent, and to only one per cent for affordable housing.
Housing developers will however no longer be eligible to claim a tax credit on inputs of raw materials like steel, cement, etc.
The companies in the sector have demanded relief regarding the input tax credit for under-construction flats which are finished but yet unsold. Joseph stated that the builders would have to take up this issue with the Ministry of Housing and Urban Affairs.
"You need to talk to them (urban development ministry). As revenue department we cannot give you any benefit of subsidy to that extent," he said.
Joseph mentioned how recently a fake invoice of Rs 1,500 crore had been found out by tax officials; the said invoice was used to illegally claim GST credit worth Rs 75 crore.
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