As of July 4, 2023, GST authorities have cancelled over 4,900 fake GST registrations and detected tax evasion of over Rs 15,000 crore during the ongoing two-month drive to weed out fake GSTINs. The drive, which began on May 16, will end on July 15.
The Central Board of Indirect Taxes and Customs (CBIC) member, Mr Shashank Priya, said that the large number of fake registrations unearthed during the drive underlines the need for policy changes to tighten Goods and Services tax (GST) registration and return filing process. He also said that the CBIC is working on a number of measures to further strengthen the GST compliance regime.
The fake GST registrations were found to be used for a variety of purposes, including evading taxes, claiming fraudulent input tax credit (ITC), and facilitating illegal cross-border trade. The CBIC has also initiated action against a number of individuals and businesses involved in these activities.
The cancellation of fake GST registrations is a major step towards ensuring the smooth functioning of the GST system and preventing tax evasion. It is also a deterrent to those who may be considering using fake GST registrations for illegal purposes.
Here are some of the key findings of the drive
- Over 4,900 fake GST registrations have been cancelled.
- Tax evasion of over Rs 15,000 crore has been detected.
- The fake registrations were found to be used for a variety of purposes, including evading taxes, claiming fraudulent ITC, and facilitating illegal cross-border trade.
- The CBIC has initiated action against a number of individuals and businesses involved in these activities.
The cancellation of fake GST registrations is a major step towards ensuring the smooth functioning of the GST system and preventing tax evasion. It is also a deterrent to those who may be considering using fake GST registrations for illegal purposes.
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