GST Council to Use Technology to Curb Fake Invoices and Fraudulent ITC Claims, Shifting Focus from Investigations to Prevention:

The GST Council plans to use technology to prevent fake invoices and fraudulent input tax credit (ITC) claims, instead of relying mainly on investigations and action by tax officers, said Sanjay Mangal, member (GST) of the Central Board of Indirect Taxes and Customs (CBIC), on Thursday.

The aim is to stop fake invoices and fraudulent ITC claims at the source, rather than investigating cases and making arrests after the fraud has taken place, Mangal said. He added that proposed changes to the GST return-filing system would require taxpayers to pay the tax they declare as payable when the related input tax credit is passed on to buyers.

Mangal was speaking at a programme titled ‘Key Outcomes of the 57th GST Council Meeting’, organised by the CGST Ahmedabad Zone in Ahmedabad.

He said amendments to the GST Act could be taken up during Parliament’s winter session. Changes related to GST registration and refunds, including automated refund processing and approval, are expected to be implemented from November 1. The government is working to introduce these reforms as early as possible, he added.

On GST rate rationalisation, Mangal said the 56th GST Council meeting, held in September 2025, focused on changes to tax rates. The meeting resulted in decisions to simplify the rate structure and reduce taxes on around 400 items.

However, the 57th GST Council meeting focused on improving GST processes and making the system more efficient, rather than changing tax rates. Mangal said a separate meeting would be held to discuss rate-related changes, but its date has not yet been decided.