During the month of July, 2023, GST Office, Mumbai conducted search into the premises of M/s NTR Private Limited and found issue of fake invoices without any supply of goods or services involving a fake ITC claim of ₹ 2.

As per the recent changes introduced through The Finance Act, 2023 With effect from 1 st October, 2023, there has been a change in the monetary limits for prosecution and compounding (except in the cases involving fake invoicing) the prosecution threshold has been amended from ₹ 1 crore to ₹ 2 Crore. Also, the prescribed fees for compounding of GST offences have been reduced to the range of 25% to 100% of the tax amount involved (as opposed to the earlier 50 to 150%). However, option of compounding has been taken away for cases of fake invoicing. Thus, as per above changes introduced, M/s NTR Private Limited now would not be entitled to avail the benefit of compounding of offences involving fake invoicing and resulting in fake ITC claims.