The Central Board of Indirect Taxes and Customs (CBIC) announced that a special two-month drive against fake GST registrations will be conducted by Central and state GST officers starting from August 16. This initiative aims to identify and crackdown on entities that engage in fraudulent activities such as availing and passing on input tax credit and evading GST through fake registrations.
This drive, which will run from August 16, 2024, to October 15, 2024, is the second of its kind targeting fake GST registrations. The CBIC has instructed all Central and State Tax administrations to actively participate in detecting suspicious or fake GST identification numbers (GSTINs) and take necessary actions to eliminate these fraudulent entities from the GST system to protect government revenue.
During the first special drive conducted between May 16, 2023, and July 15, 2023, a total of 21,791 entities with GST registrations were found to be non-existent. This discovery led to the detection of suspected tax evasion amounting to Rs 24,010 crore, with Rs 8,805 crore falling under state tax jurisdiction and Rs 15,205 crore falling under CBIC jurisdiction.
Rajat Mohan, Executive Director at Moore Singhi, emphasized the importance of data analytics and collaboration between different agencies in combating tax evasion. He praised the government’s dedication to ensuring a clean and fair tax environment through initiatives like this extended drive against fake GST registrations.
This special drive serves as a crucial step towards maintaining the integrity of the GST system and preventing revenue loss due to fraudulent activities. By targeting fake registrations and implementing verification processes, tax authorities aim to create a more transparent and compliant tax ecosystem for businesses across the country. The success of this drive will not only help in curbing tax evasion but also enhance the overall effectiveness of the GST regime in India.
