Rs 15,000 crore tax evasion detected, over 4,900 faux GST registrations cancelled
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On the fifth of July, a senior tax official said that the GST authorities have cancelled over 4,900 faux GST registrations, for the reason that sixteenth of May, 2023. Additionally, the authorities have additionally recognized round 17,000 non-existent GSTINs within the ongoing pan-India drive towards faux registrations.
As per PTI, the official added that the authorities have additionally detected tax evasion of round Rs 15,000 crore throughout this course of.
Shashank Priya is a member of the Central Board of Indirect Taxes and Customs (CBIC). He said that within the drive towards faux registration, until July 4, over 69,600 GST Identification Numbers (GSTINs) have been chosen for bodily verification by area tax officers.
During this bodily verification, round 59,000 GSTINs have been verified by the sphere officers. However, the officers discovered that round 16,989 GSTINs have been non-existent.
Taking motion on these GSTINs, round 11,000 GSTINs have been suspended whereas the registration of 4,972 GSTINs has been cancelled.
Speaking on the ASSOCHAM’s National Conclave on GST, Priya stated this concerned tax evasion of over Rs 15,000 crore, blocking of enter tax credit score (ITC) was Rs 1,506 crore, and recovered taxes price Rs 87 crore.
The two-month-long pan-India drive towards faux GST registration started on the sixteenth of May and can finish on the fifteenth of May.
Fake registration poses a big drawback underneath the GST system. Fraudsters have interaction on this apply by issuing faux invoices to wrongfully declare Input Tax Credit (ITC), thereby defrauding the federal government’s income.
Earlier, on the first of July, CBIC chairman Vivek Johri stated that GST officers have busted 304 syndicates involving 9,000 faux GSTINs and enter tax credit score (ITC) claims of Rs 25,000 crore within the ongoing drive towards bogus companies.
The CBIC chief flagged that solely 40 p.c of the company revenue taxpayer base is registered underneath Goods and Services Tax (GST).
Currently, there are round 14 million companies which are registered underneath the GST. This is sort of double the variety of companies that have been earlier registered in the course of the oblique tax regime, that’s, earlier than the rollout of the Goods and Services Tax which was carried out in India on the first of July, 2017.
