Speaking on the budget, tabled by Finance Minister Nirmala Sitharaman on Saturday, CMA B Mallikarjun Gupta, Chief Taxologist at Logo Infosoft said that “Fake invoices being issued in GST Regime have been a big headache for the Government, and to fix such errant taxpayers this budget proposes a hefty penalty equivalent to the aggregate amount of fake invoices issued or transactions excluded.”
“The budget proposes to levy an equal amount of penalties on the person who has received or misused to take the input tax credit. These stringent provisions will weed-out the black sheep from the system,” he said.
“GST is also being strengthened to bring transparency and to remove errant taxpayers through stringent penalties. At the same time simplifying the return filing process and implementing e-invoicing,” the statement said.
Continuing to the statement, Gupta said: “Allowing NBFCs to finance the invoices of MSMEs through TReDs is a welcome step. As most of the cash-starved MSMEs are in the unorganized sector, this will open an easy way to receive financing from NBFCs.”