"input-tax-credit-itc"

The Surat zonal unit of the DGGI has arrested two individuals for their alleged involvement in claiming wrongful ITC through the creation of fake bills.

Identified as Rambabu Pula, he created non-existent firms and issued invoices without supplying goods or services and availed input tax fraudulently.

Based on the recommendations of the GST Law Committee, the government has notified new indirect tax rules that makes cash payment of 1 per cent of GST tax liability mandatory for businesses whose taxable supply value exceeds Rs 50 lakh.

A majority of the trading community took to social media platforms to condemn the amendment to Rule 36, which according to them reduces the claimable Input Tax Credit (ITC) for them.

From January onwards, small taxpayers would need to file only eight returns (four GSTR-3B and four GSTR-1 returns) in a year, one of the sources said.