In the first nine months of the fiscal (April-November), GST collection has averaged just a tad over Rs 1 lakh crore per month.

The revenue department has set a target of Rs 1.18 lakh crore of average monthly Goods and Services Tax (GST) collection in the remaining three months of the fiscal (January-March) and has asked the indirect tax department to specially focus on fraudulent input tax credit (ITC) claims as revealed in data analytics review. In the first nine months of the fiscal (April-November), GST collection has averaged just a tad over Rs 1 lakh crore per month.

Sources said that about 40,000 companies have been red-flagged for excess or fraudulent ITC availment. “Out of 1.2 crore GST registrants, the focus would be on these identified taxpayers. Field formations have been directed to conclude ITC recuperation without any overreach but in a stipulated time-frame,” an official said. In the previous review meeting in mid-December last year, revenue department had put GST collection target at Rs 1.14 lakh crore per month. It had kept the direct tax target unchanged at Rs 13.35 lakh crore despite the corporate tax relief of Rs 1.45 lakh crore announced in September.

In the meanwhile, the directorate general of GST intelligence (DGGI) has asked all the zonal heads of the GST to start blocking input tax credit (ITC) availed by taxpayers on the basis of fake invoices or against invoices without actual supply of goods and services. The letter sent earlier this week has mandated that the exercise be completed by Friday. This will apply to businesses that have been identified through data analytics or other measures.

Sources said tax officials would look into the mismatch of supply and purchase invoices, data analytics of mismatch in GSTR-1, GSTR-2A and GSTR-3B tax return forms, failure of filing returns and over-invoicing among other parameters to identify fraudulent practices.

“Taxpayers who have taken ITC wrongfully can voluntarily repay amount equal to inadmissible credit, before verification & punitive action is taken against them,” the official quoted above said. Tax officials would also visits these red-flagged businesses, and report to the revenue department on a daily basis.