887 Arrest made upto December 2024 in GST Offence Cases:

887 Arrest made upto December 2024 in GST Offence Cases In response to the criticism of the structure of Goods and Services Tax (GST), also on the spate of the business across India, and particularly Micro, Small, and Medium Enterprises (MSMEs), the Government of India has argued that while claims are mounting multi-tier tax rates as well as strict compliances lead to an increase in GST evasions and affects MSMEs, efforts done by the government streamline business operations. Currently, there are four main tax rates under GST: 5%, 12%, 18%, and 28%. There are special tax rates for things like gold, silver, and diamonds. Additionally, a GST Compensation Cess is levied on items like tobacco, soft drinks, and vehicles. The whole system has been developed based on the recommendations from the GST Council, which comprises both Union and State governments' representatives. As far as the questions raised on tax evasion and fraudulent dealings are concerned, the Government says it has done enough in countering GST-related fraud. It had special drives between May-August 2023 and August-October 2024, both under the Central and State GST Authorities. In addition, guidelines are also introduced so that the ease of doing business and the procedure of investigation do not burden taxpayers too much. In light of the specific challenges with which MSMEs suffer, the Government has brought forward a number of initiatives in recent times towards easing the GST structure and relief in regard to small businesses. One of them is an exemption from GST registration in regard to services with turnover up to Rs. 20 lakh per year where the limit for certain states is Rs. 10 lakh, and goods with Rs. 40 lakh per year for certain states of Rs. 20 lakh. The Government has also brought in the Composition Scheme for the smaller units. For the small businesses, the scheme helps them pay 1% on goods or 5% on restaurant services in a flat rate, with return filing every year and quarterly payments of tax, if the turnover does not go beyond Rs. 1.5 crore that in some states is Rs. 75 lakhs. Therefore, complex bookkeeping is evaded, and tax filings get simplified. The Government has also introduced the Composition Scheme for service providers. This will benefit businesses with turnovers up to Rs. 50 lakh by allowing them to pay a flat 6% tax and file annual returns with quarterly payments. Those with turnovers up to Rs. 5 crore can also choose to file quarterly returns under the Quarterly Return Filing and Monthly Payment scheme. In addition to that, now NIL GST returns can be filed through SMS making compliance less cumbersome. The Government has brought retrospective amendments as an MSME incentiviser like allowing Input Tax Credit for invoices and debit notes related to the financial years 2017-18 to 2020-21, which can be availed through any GSTR 3B return by November 30, 2021. Demand notice under Section 73 of Central Goods and Services Tax Act and another important reform in that respect is waiver of interest and penalty in case demand notices issued provided taxpayer pays full amount of tax demanded by March 31, 2025. Special Drives against fake registration and fake ITC Year wise total GST evasion including ITC frauds detected Pan India for the period 2021-22 to 2024-25 [upto December, 2024] by Central GST Formations The Government would thus be seeking to balance simplicity of the GST framework without overwhelming MSMEs with too much demand for compliance, which should be conducive to business growth and economic development.