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  • CCI AD FROM 5th April 2021

Clarification on various issues relating to applicability of demand and penalty provisions under the CGST Act, 2017 in respect of transactions involving fake invoices

Circular No.ES/55/2022-23                                                           8th July, 2022       

 

To: Members of the Council          

 

Sub: Clarification on various issues relating to applicability of demand and penalty provisions under the CGST Act, 2017 in respect of transactions involving fake invoices 

 

Dear Member,        

 

Vide Circular No. 171/03/2022-GST dated 6th July, 2022, CBIC has clarified the issues relating to applicability of demand and penalty provisions under the CGST Act, 2017 in respect of transactions involving fake invoices. 

 

It has been noticed by CBIC that registered persons are involved in issuing tax invoice (fake invoices), without actual supply of goods or services or both to enable the recipients of such invoices to avail and utilize ITC fraudulently. Also, representations have been received from the trade and field formations seeking clarification on the issues relating to applicability of demand and penalty provisions under the CGST Act, 2017, in respect of transactions involving fake invoices.  

 

Now, in order to clarify these issues and ensure uniformity in the implementation of the provisions of law across the field formations, CBIC has provided clarification in this regard.  

 

For detailed information, members may kindly refer to Circular No. 171/03/2022-GST dated 6th July, 2022.

 

Members may kindly make a note of the above.  

  

Thanking you,                        

  

Yours faithfully,                       

   

S. BALARAJU     

EXECUTIVE DIRECTOR