GoM Raises Worry Over Rs. 2 Lakh Crore GST Fraud, Plans to Stop Tax Leakages:

GoM Raises Worry Over Rs. 2 Lakh Crore GST Fraud, Plans to Stop Tax Leakages A high-level Group of Ministers (GoM) has met recently to have a conversation regarding the current GST collections and how to stop tax fraud. The main focus of this meeting was regarding the big fraud happening through Input Tax Credit (ITC). It has became a big concern for the government as the tax amount has been reached over Rs. 2 lakh crore. This group was made again in March to study GST revenue and find ways to make tax collection better in all states. In the meeting, some states such as Gujarat, Telangana and Rajasthan gave presentations. They shared their strategies of increasing revenue and stopping fraud in their states. These ideas were discussed so that other states can also use similar steps. A major problem discussed was the increasing number of fake companies. GST officers found more than 42,000 fake firms between the years 2023-24. These firms claimed fake ITC worth over Rs. 1.01 crore. Only Rs. 3,107 crore has been recovered till now. Also, 316 people have been arrested for their role in this fraud. The group also said about using more technology to solve this problem. They suggested using e-invoicing more widely and also upgrading the IT systems. This will help to track fake claims easily and decrease the mistakes of human. They also checked at GST collections before and after the GST system started and felt that better teamwork between central and state tax departments is needed to stop tax cheating. This group of ministers involves members from various states liKe Bihar, Chhattisgarh, Gujarat, Andhra Pradesh, Maharashtra, Punjab, Tamil Nadu and Telangana. They will also submit a full report to the GST Council after that so that proper action can be taken. This meeting showed how serious this ITC fraud issue is. But also, with the right steps and support from all states, the government will be able to stop these frauds and make the GST system more stronger and honest.