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In a nationwide crackdown on fake companies, tax officials have unearthed 10,700 fraudulent GST registrations involving tax evasion amounting to Rs 10,179 crore. Initiated to curb tax fraud, this drive targeted firms that have been set up to exploit the Goods and Services Tax (GST) system, causing substantial losses to the exchequer.
Shashank Priya, a member of the Central Board of Indirect Taxes and Customs (CBIC), disclosed that Aadhaar authentication for GST registrations is already operational in 12 states. By October 4, four additional states are set to implement this system, bringing the total to 20 states, including Madhya Pradesh, Rajasthan, Assam, Tamil Nadu, Uttar Pradesh, and Haryana.
Speaking at an Assocham event, Shashank Priya also said that in future, the tax authorities may also put certain restrictions on new taxpayers based on their risk profile. “How many invoices they can issue in a month, we may also put some restriction on that in the future. We feel very pained at the misuse of the system.We have to use all methods that are at our command to ensure that those are stopped,” he said.
The CBIC official also said that the government is taking targeted action to check fake GST registration and more physical verification is taking place. The second all-India drive against fake registration began on August 16 and will continue till October 15. He said the tax authorities have identified 67,970 GSTINs. Of this, 59 per cent of the GSTINs or 39,965 have been verified as of September 22.
Shashank Priya said, “27 per cent have been found to be non-existent. This percentage is almost similar compared to the last drive. We have detected evasion of Rs 10,179 crore. Blocked ITC of Rs 2,994 crore. Also, recovery of Rs 28 crore has been done (in the second drive till September 22).” In the first drive against fake registration between May 16, 2023 and July 15, 2023, a total of 21,791 entities having GST registration were discovered to be non-existent.
An amount of Rs 24,010 crore of suspected tax evasion was detected during the first special drive last year. In the GST regime, there is a problem of data mismatches which is leading to more than one lakh show cause notices being issued last fiscal by tax officers, he said.
(With PTI inputs)
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