Finance Minister Sitharaman asks CBIC to settle classification issues
enforcement heads of state and central goods and services tax (GST) to settle tax cases linked to classification at its earliest.
In her address at a conference of enforcement chief of the state and the central GST formations in New Delhi, she told officials to engage with stakeholders to understand their concerns, enhance compliance, streamline processes, and work collaboratively towards making the tax system more transparent and efficient.
«Clarity on classification related issues should be looked into at the earliest through appropriate channels,» the Finance Ministry said in a statement quoting Sitaraman.
In the last few months large number of notices were sent to offices where there is lack of clarity on classification, attracting negative feedback from the industry.
The finance minister asked both states and centre to share the best practices, and leverage technology for better coordination for stopping tax evasion and fake invoices.
The conference was aimed at discussing ways to detect tax evasion and the leverage of technology to identify any fraudulent claim.
According to the finance ministry statement nationwide crackdown on fake registrations and bogus billing from May 2023 alone has resulted in detection of input tax credit (ITC) evasion of ₹49,623 crore involving 31,512 bogus firms.
The tax officials under GST has detected fake ITC evasion of ₹.1.14 lakh crore from the year 2020 till date. «Fake entities and GST evasion not only erode our national revenue but also distort fair competition and
