Countries implementing value added tax with credit mechanism are
grappling with the global menace of input tax credit frauds. In an
attempt to curb this menace, the GST law introduced various
anti-abuse provisions, which included matching the GST credit taken
by a taxpayer with the GST paid by its supplier over the GSTN. This
was the first time that any country across the world with a large
volume of transactions attempted to undertake such matching. This
would have been a big leap and an example for all the countries
suffering credit frauds. However, it's been three years, but
the planned provisions could not be launched.
While the technology experts are still working on the
full-fledged transaction matching and payment of taxes, GSTN
started releasing the GSTR 2A report from early 2018. But no one
knew what was to be done with these reports. Some guessed (while
others were nudged by the tax authorities to make them realize)
that the reconciliation which was to be
