According to a report officials have prepared a detailed list of entities and their beneficiaries that allegedly created multiple shell firms to represent fake transactions and the tax authorities will target such entities during the next two months.
Tax authorities are planning stricter actions on companies that allegedly created multiple shell firms to represent fake transactions without any underlying goods and services for availing input tax credit (ITC), Business Standard reported.
According to the report (GST) officials are starting a special drive starting May 16 to segregate bogus GST invoices, officials have prepared a detailed list in this regard and will target such entities during next two-months. The list of suspected entities has been prepared based on the CBIC’s data.
"Some of these entities showed a jump in their annual turnover in FY21, FY22, and FY23, raising suspicion," the report said.
The special drive by the Central Board of Indirect Taxes and Customs (CBIC) is aimed at weeding out fake ITC claims by using forged GST registration.
The exercise will be conducted by all central and state tax administrations.
CAclubindia
