New Delhi: Since the initiation of the special drive against fake registrations in mid-May 2023, a total of 29,273 bogus firms involved in suspected Input Tax Credit (ITC) evasion of Rs. 44,015 crore have been detected, the Union Ministry of Finance stated here today. This, the Ministry claimed saved Rs. 4,646 crore of which Rs. 3,802 crore was by blocking of ITC and Rs. 844 crore was by way of recovery. So far, 121 arrests have been made in the cases.
In the quarter ending December 2023, 4,153 bogus firms that involved suspected ITC evasion of around Rs. 12,036 crore were detected. 2,358 of these bogus firms were detected by the Central GST Authorities. This protected revenue of Rs. 1,317 crore of which Rs. 319 crore was realised and Rs 997 crore was protected by blocking ITC. 41 persons were arrested in these cases. 31 of these arrests were by Central GST Authorities.
The Ministry said the Government has taken various measures to strengthen the GST registration process. Pilot projects of biometric-based Aadhar authentication at the time of registration have been launched in Gujarat, Puducherry and Andhra Pradesh.
Besides, to curtail evasion of tax, measures have been initiated such as sequential filing of GST returns, system-generated intimation for reconciliation of the gap in tax liability in GSTR-1 & GSTR- 3B returns and of the gap between ITC available as per GSTR-2B & ITC availed in GSTR-3B returns, use of data analytics and risk parameters for detection of fake ITC.
Action against bogus firms during the Quarter ending in December 2023
The Union Finance Ministry said that to curb fraud in Goods and Services Tax (GST) and increase compliance, the GST formations, under the Central Board of Indirect Taxes and Customs (CBIC) and the State/Union Territory governments, across the country are carrying out a focused drive on the issue of non-existent/bogus registrations and issuance of fake invoices without any underlying supply of goods and services.
– global bihari bureau
