The Finance Minister, Nirmala Sitaraman while presenting the Budget 2021-22 urged the provisional attachment of the assets of the individual who has hands behind the bogus GST invoices exceeding Rs. 2 crores.

The Finance minister being very well aware of the impact on revenue collection from those who were indulging in the practice of filing fake invoices to claim input tax credit fraudulently proposed a new provision in the Customs Act (section 114AC) to prescribe penalty in specific cases where any person claims refund of tax or duty discharge, using fraudulent invoices, on exports of goods.” Section 114C stated that “Where any person has obtained any invoice by fraud, collusion, wilful misstatement or suppression of facts to utilise input tax credit on the basis of such invoice for discharging any duty or tax on goods that are entered for exportation under a claim of refund of such duty or tax, such person shall be liable for a penalty not exceeding five times the refund claimed”.

In order to protect the revenue, it is proposed to provide that the penalty proceedings initiated for fake invoice/sham transactions of more than Rs.2 crore shall also be eligible for provisional attachment of assets.