new delhi having detected frauds of close to rs 50000 crore the centre is looking to tighten processes including those related to claiming input tax credit itc and will focus on getting states to okay plans to shut down leaks and evasions at this weeks gst council meetingthe governments effort to shore up collections and improve revenues is likely to be a major area of discussion at the gst council calls for rate cuts for stressed sectors like autos is expected to figure but new procedures to prevent evasion and misuse of gst provisions are likely to be adoptedon an average businesses pay 20 of their tax in cash and pay the remaining using the tax credit accumulated in their accounts using the same principle the finance ministry is planning to ask states to put in place a mechanism under which an enhancement in the limit to claim tax credit will require payment of 20 as the margin money so if your turnover is rs 50 lakh and you want the limit enhanced to rs 60 lakh you will have to pay rs 2 lakh as margin moneythis is like linking your loan limit to your credit history if a business has received orders it will have to convince our officers about a higher limit or talk to banks and get 20 extra the entire process will be automated to avoid any discretion explained an officerover two years after the launch of gst collections have hovered around the rs 1 lakh crore mark as leakages are seen to be rampant especially when it comes to claiming itc on taxes paid during the entire chain from purchase and transport of raw material to sale of the final product by a retailer sources told toiplugging gaps and finding ways to step up collections are going to be key themes at the meeting in goa on friday as the centre and states are staring at a massive shortfall in gst revenue with collections so far in the year growing over 6 which is half the asking rate the tight fiscal position is also expected to force the council to defer a decision on tax cuts which is being demanded by certain industry groupsfor the government a big worry is tax evasion just last week nationwide searches were conducted which led to unearthing of bogus claims of over rs 450 crore we are looking at tough measures to rein in flybynight operators who are misusing the system said a tax officerin several cases tax authorities have detected that a new business claims itc by showing sales to individuals and entities as suppliers and then vanishes we have come across instances where aadhaar and bank details of terminally ill patients have been misused said an officeras a first step aadhaar authentication for gst is being made mandatory besides a key focus will be to limit the amount of itc that an entity can claim especially if it is new so the itc that a business