Central and state GST officers will launch a nationwide special two-month drive against fake GST registrations starting August 16, as announced by the Central Board of Indirect Taxes and Customs (CBIC) on Monday. This marks the second such initiative aimed at identifying fraudulent registrations under the Goods and Services Tax (GST) system. Fake registrations are often used to fraudulently claim and pass on input tax credit, thereby evading GST payments.
The CBIC has instructed all central and state tax administrations to participate in the drive from August 16, 2024, to October 15, 2024. The objective is to detect suspicious or fake GST Identification Numbers (GSTINs), conduct necessary verifications, and take remedial actions to remove these fraudulent entities from the GST system. This effort is crucial to safeguarding government revenue.
During the first drive, conducted between May 16, 2023, and July 15, 2023, authorities discovered that 21,791 entities, including 11,392 under state tax jurisdiction and 10,399 under CBIC jurisdiction, had non-existent GST registrations. This initial drive uncovered suspected tax evasion amounting to Rs 24,010 crore, with Rs 8,805 crore pertaining to state taxes and Rs 15,205 crore to central taxes.
Rajat Mohan, Executive Director of Moore Singhi, emphasized the importance of data analytics and inter-agency collaboration in combating tax evasion. He noted that this extended drive underscores the government's commitment to maintaining a clean and fair tax environment. The proactive measures taken through these drives highlight the ongoing efforts to ensure the integrity of the GST system and prevent revenue loss due to fraudulent activities.
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