GST Fraud : Tax officials have detected about 10,700 fake registrations under GST, involving tax evasion of Rs 10,179 crore. Central Board of Indirect Taxes and Customs (CBIC) member Shashank Priya said that Aadhaar authentication for goods and services tax (GST) registration is already implemented in 12 states and four more states will be added by October 4. Eventually, 20 states including Madhya Pradesh, Rajasthan, Assam, Tamil Nadu, Uttar Pradesh, and Haryana will introduce Aadhaar authentication.

This will be strict in the coming times.

Speaking at an event organized by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), Shashank Priya said that in the future, tax officials will be able to impose certain restrictions on new taxpayers based on their risk profile. He said that in the future we can impose certain restrictions on how many bills they can issue in a month... We are extremely saddened by the misuse of this system. We will have to use all possible means to stop them.

The CBIC official said the government is taking targeted action to check fake GST registrations and more physical verifications are being done. The second all-India drive against fake registrations, which began on August 16, will continue till October 15. He said tax officials have identified 67,970 GSTINs (Goods and Services Tax Identification Number). Of these, 59 percent of GSTINs, or 39,965 have been verified till September 22.

27 institutions do not exist

Priya said that 27 percent of such institutions have been found which do not exist. This percentage is almost the same as compared to the previous campaign. We have detected tax evasion of Rs 10,179 crore. The input tax credit (ITC) of Rs 2,994 crore has been stopped. Also, Rs 28 crore has been recovered (in the second campaign till September 22). The first campaign against fake registration was run between May 16 and July 15, 2023. In this, a total of 21,791 such units with GST registration were found which did not exist. Suspected tax evasion of Rs 24,010 crore was detected in the first special campaign last year. He said that there is a problem of mismatched data in the GST system, due to which 1,12,852 show cause notices were issued by tax officials in the last financial year 2023-24. He also said that in the future when GSTR-1A and 'Invoice Management System' (IMS) become stable, the facility to edit GSTR-3B will not be required.