New Delhi, In a significant move against fake registrations, GST officers have exposed 29,273 bogus firms making fraudulent Input Tax Credit (ITC) claims amounting to Rs 44,015 crore in the past eight months till December 2023. The drive, aimed at safeguarding revenue, has successfully saved Rs 4,646 crore.
During the October-December quarter alone, 4,153 suspect firms, potentially evading Rs 12,036 crore in taxes, were identified. Maharashtra leads with 926 bogus firms, followed by Rajasthan (507), Delhi (483), and Haryana (424).
The crackdown in the December quarter protected revenue of Rs 1,317 crore, with Rs 319 crore recovered and Rs 997 crore safeguarded by blocking ITC. A total of 41 individuals were arrested, with Central GST Authorities accounting for 31 of these arrests.
Since the initiation of the special drive in mid-May 2023, a total of 29,273 bogus firms, involved in suspected ITC evasion, have been detected, saving Rs 4,646 crore. Of this, Rs 3,802 crore is saved by blocking ITC, and Rs 844 crore through recovery. The government has made 121 arrests in these cases so far.
In Maharashtra, 926 bogus firms were suspected of evading Rs 2,201 crore, leading to 11 arrests. Delhi reported Rs 3,028 crore evasion by 483 firms, resulting in 11 arrests. Haryana had 424 bogus firms involved in a Rs 624 crore evasion.
The government is actively taking measures to strengthen the GST registration process, including pilot projects for biometric-based Aadhar authentication in states like Gujarat, Puducherry, and Andhra Pradesh.
To combat fraud in GST, authorities are focusing on non-existent/bogus registrations and issuance of fake invoices. Various measures such as sequential filing of GST returns, system-generated intimation for reconciliation of tax liability gaps, and the use of data analytics are being employed.
By PTI
