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GST Revenue collection for March 2021 sets new record

 

The gross GST revenue collected in the month of March 2021 is at a record of Rs 1,23,902 crore, a statement issued by the Ministry of Finance informed.

Of the above figure, CGST is Rs 22,973 crore, SGST is Rs 29,329 crore, IGST is Rs 62,842 crore (including Rs 31,097 crore collected on import of goods) and Cess is Rs 8,757 crore (including Rs 935 crore collected on import of goods).

The government has settled Rs 21,879 crore to CGST and Rs 17,230 crore to SGST from IGST as a regular settlement. In addition, the Centre has also settled Rs 28,000 crore as IGST ad-hoc settlement in the ratio of 50:50 between Centre and States/UTs. The total revenue of the Centre and the States after regular and ad-hoc settlements in the month of March 2021 is Rs 58,852 crore for CGST and Rs 60,559 crore for the SGST. The Centre has also released a compensation of Rs 30,000 crore during the month of March 2021.

The GST revenues during March 2021 are the highest since the introduction of GST. In line with the trend of recovery in the GST revenues over the past five months, the revenues for the month of March 2021 are 27 per cent higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 70 per cent higher and the revenues from the domestic transaction (including import of services) are 17 per cent higher than the revenues from these sources during the same month last year. The GST revenue witnessed growth rate of (-) 41 per cent, (-) 8 per cent, 8 per cent and 14 per cent in the first, second, third and fourth quarters of this financial year, respectively, as compared to the same period last year, clearly indicating the trend in the recovery of GST revenues as well as the economy as a whole.

 

    #GST
    01-April-2021
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    CGST Delhi officials unearth input tax credit fraud worth Rs 94 crore

     

    The officers of CGST Delhi North Commissionerate have unearthed a case of input tax credit fraud of around Rs 94 crore.

    Based on data analysis and gathering of certain intelligence, the name of one Krishan Kumar emerged who was involved in creating and operating fake firms using identification documents of his friends/employees.

    As per the investigation conducted so far, a total of 5 fake firms namely M/s Shradha Traders, M/s Anshara Impex, M/s Vijeta Enterprises, M/s SM Agencies and M/s Deepasha Sales, were created by him for the issuance of goods-less invoices for items like butter/ghee/oil and passed on inadmissible Input Tax Credit (ITC) of Rs 94 crore approximately.  

    During the search of his residence, incriminating documents like ATM cards, signed cheques, bank documents, stamps of these dummy firms including the stamp of the transport company as mentioned in the e-way bills of the fake firms and outer packets/cases of SIM cards of mobile phones used for registration of firms were recovered.

    In view of the above, Krishan Kumar is found to have committed an offence specified under Section 132(1)(b) of the CGST Act, 2017. Accordingly, he has been arrested on 25th March 2021 under the provisions of Section 69(1) of the CGST Act, 2017. He was sent to 14 days of judicial custody by the duty Magistrate. Further investigation is in process.

    In the financial year 2020-21, CGST Delhi Zone has made a total of 40 arrests in various cases involving GST evasion amounting to Rs 5,310 crore.

    #GST #CGST
    26-March-2021
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    Two held for defrauding Government Exchequer of more than Rs 392 crore

     

    The officers of Central Goods and Services Tax (CGST) Commissionerate, Delhi (East) have achieved success with their investigations leading to the unearthing of a massive network of fictitious firms to generate and avail fake Input Tax Credit (ITC) of Goods and Services Tax (GST), a release issued by the Ministry of Finance informed.

    The network of fictitious companies was being operated by one Naresh Dhoundiyal in connivance with one Devender Kumar Goyal, who is a Charted Accountant by profession. Both Naresh Dhoundiyal and Devender Kumar Goyal are former employees of Essel Group. Though they are presently not working with the Essel group officially, however, they are passing on inadmissible ITC to the said group. Investigations indicate that a layer of genuine looking fictitious intermediatory companies was created to pass on bogus ITC from non-existent and fake firms to the companies of Essel Group without actual supply of any goods or services. This was apparently done to enable Essel Group to avail inadmissible Input Tax Credit of GST, book expenses to evade Income Tax and inflate their turnover to push the share prices of their listed companies, the release said.

    Naresh Dhoundiyal incorporated multiple fictitious intermediatory companies for Essel Group whereas, Devender Kumar Goyal, CA arranged the fake invoices of various other fictitious and non-existent firms for such fictitious intermediatory companies. The total fake Input Tax Credit passed on by such fictitious intermediatory companies is quantified to be Rs. 92.18 crore whereas, the total fake Input Tax Credit passed on by other fictitious and non-existent firms pertaining to the larger network is quantified to be more than Rs. 300 crore. The syndicate has thus defrauded the Government exchequer of more than Rs. 392 crore by issuing bogus invoices of more that Rs. 3,000 crore without actual supply of any goods or services which is likely to increase as the investigation progresses. It is pertinent to mention that M/s Vertilink Media Solutions Private Limited has admitted the evasion and have voluntarily deposited Rs 2.5 crore.

    Naresh Dhoundiyal and Devender Kumar Goyal, CA hatched a deep-rooted criminal conspiracy with the intent to defraud the Government exchequer and knowingly committed offences specified under Section 132(1)(b) and 132(1)(c) of the CGST Act, 2017 which are cognizable and non-bailable offences as per the provisions of Section 132(5) and punishable under clause (i) of subsection 1 of Section 132 of the Act. Naresh Dhoundiyal and Devender Kumar Goyal, CA have been arrested under Section 69(1) of the CGST Act, 2017 and produced before the Duty Magistrate on 4th March 2021 who remanded them to judicial custody of 14 days till 18th March 2021. Further investigation in the case is in process.

    It is pertinent to mention here that since the inception of GST Central Tax, Delhi Zone has made 30 arrests in various cases involving GST evasion amounting to more than Rs 4,450.86 crore, the release added.

    #GST #Delhi
    05-March-2021
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    Rs 1,13,143 crore gross GST revenue collected in Feb

     

    The gross GST revenue collected in the month of February 2021 is Rs 1,13,143 crore, the Ministry of Finance informed in a statement.

    Of the gross GST, CGST is Rs 21,092 crore, SGST is Rs 27,273 crore, IGST is Rs 55,253 crore (including Rs 24,382 crore collected on import of goods) and Cess is Rs 9,525 crore (including Rs 660 crore collected on import of goods).

    The government has settled Rs 22,398 crore to CGST and Rs 17,534 crore to SGST from IGST as regular settlement. In addition, the Centre has also settled Rs 48,000 crore as IGST ad-hoc settlement in the ratio of 50:50 between Centre and States/UTs. The total revenue of the Centre and the States after regular settlement and ad-hoc settlement in the month of February 2021 is Rs 67,490 crore for CGST and Rs 68,807 crore for the SGST.

    In line with the trend of recovery in the GST revenues over the past five months, the revenues for the month of February 2021 are 7 per cent higher than the GST revenues in the same month last year. During the month, revenues from import of goods were 15 per cent higher and the revenues from the domestic transaction (including import of services) were 5 per cent higher than the revenues from these sources during the same month last year.

    The GST revenues crossed Rs 1 lakh the fifth time in a row and crossed Rs 1.1 lakh crore third time in a row post-pandemic despite this being revenue collection of the month of February. This is a clear indication of the economic recovery and the impact of various measures taken by tax administration to improve compliance.

    The chart below shows trends in monthly gross GST revenues during the current year. The table shows the state-wise figures of GST collected in each State during the month of February 2021 as compared to February 2020.

    #GST
    02-March-2021