New Delhi (Aryavarth): In a caliberated move to curb tax frauds and boost compliance in Goods and Services Tax (GST), the GST formations, under the Central Board of Indirect Taxes and Customs (CBIC) along with State/UT Governments, have undertaken a focused drive against fake registrations and invoice frauds since May 2023.
This concerted effort has led to the detection of a staggering 29,273 bogus firms, suspected of evading Input Tax Credit (ITC) totaling Rs. 44,015 crore. The vigilant actions of the authorities have saved Rs. 4,646 crore, including Rs. 3,802 crore through blocking of ITC and Rs. 844 crore through recovery. In connection with these cases, 121 arrests have been made, marking a significant advancement in the fight against GST frauds.
In the last quarter of 2023 alone, 4,153 bogus firms have been unearthed, involved in suspected ITC evasion of around Rs. 12,036 crore. The Central GST Authorities alone detected 2,358 of these firms, saving revenue of Rs. 1,317 crore. This crackdown has led to 41 arrests, with 31 made by the Central GST Authorities.
To fortify the GST registration process and combat evasion, pilot projects for biometric-based Aadhar authentication have been initiated in Gujarat, Puducherry, and Andhra Pradesh. The government has also implemented various measures, including sequential filing of GST returns and use of data analytics, to identify and prevent fake ITC claims.
The state-wise data provided gives a clear picture of the widespread nature of this issue. Delhi, with 483 detected bogus firms and tax evasion of Rs. 3,028 crore, topped the list, followed by Maharashtra with 926 firms and an evasion of Rs. 2,201 crore. The least affected regions included several North-Eastern states and Union Territories like Andaman & Nicobar Islands and Lakshadweep, showing zero cases in this period.
This drive is a part of the government’s broader strategy to enhance tax compliance and integrity in the GST system, thereby safeguarding the nation’s financial interests and ensuring a fair and transparent tax environment.