New Delhi: To combat fraud in Goods and Services Tax (GST) and enhance compliance, GST formations under the Central Board of Indirect Taxes and Customs (CBIC) and State/UT Governments nationwide are conducting a targeted campaign against non-existent/bogus registrations and the issuance of fake invoices without genuine transactions, Govt said on Sunday.
Since the launch of the special drive against fake registrations in mid-May 2023, a total of 29,273 bogus firms involved in suspected Input Tax Credit (ITC) evasion of Rs. 44,015 crore have been uncovered.
This initiative has safeguarded Rs. 4,646 crore, with Rs. 3,802 crore blocked through ITC and Rs. 844 crore recovered. Notably, 121 arrests have been made in connection with these cases.
In the quarter ending December 2023, 4,153 bogus firms, suspected of ITC evasion totaling around Rs. 12,036 crore, were identified. Among these, 2,358 were detected by Central GST Authorities.
This action protected revenue of Rs. 1,317 crore, with Rs. 319 crore recovered and Rs. 997 crore secured by blocking ITC. A total of 41 individuals were arrested, with 31 of these arrests made by Central GST Authorities. State-wise details are attached.
To fortify the GST registration process, the government has implemented pilot projects for biometric-based Aadhar authentication during registration in Gujarat, Puducherry, and Andhra Pradesh.
Additionally, measures such as sequential filing of GST returns, system-generated intimation for reconciling tax liability gaps in GSTR-1 & GSTR-3B returns, and gaps between ITC in GSTR-2B & ITC availed in GSTR-3B returns have been taken. The use of data analytics and risk parameters to detect fake ITC is also part of these efforts.
