look news india
Tax authorities have detected around 10,700 fake registrations under GST, involving tax evasion of Rs 10,179 crore. 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, Central Board of Indirect Taxes and Customs (CBIC) member Shashank Priya said. Eventually, 20 states, including Madhya Pradesh, Rajasthan, Assam, Tamil Nadu, Uttar Pradesh and Haryana, will roll out Aadhaar authentication. Speaking at an event organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), Shashank Priya said in future, tax authorities will also be able to impose certain restrictions on new taxpayers based on their risk 'profile'.
The campaign to catch thieves will continue till October 15
He said, “We may put some restrictions in future on how many bills they can issue in a month. We are very sorry for the misuse of this system. We have to use every possible means to stop them.” The CBIC official said that the government is taking steps to check fake GST registrations and more physical verifications are being done. The second all-India campaign against fake registrations will start from August 16 and will run till October 15. He said that tax officials have identified 67,970 GSTINs (Goods and Services Tax Identification Number). Of these, 59 percent GSTINs or 39,965 have been verified till September 22. Priya said, 27 percent of these institutions were found to be non-existent. This percentage is almost equal to the last campaign. We have detected tax evasion of Rs 10,179 crore. Input tax credit (ITC) of Rs 2,994 crore has been stopped. Also, Rs 28 crore has been recovered.
1,12,852 show cause notices were issued
The first campaign against fake registrations was conducted between May 16 and July 15, 2023. A total of 21,791 units with GST registration were found to be non-existent. Last year, the first special campaign revealed suspected tax evasion of Rs 24,010 crore. He said that there is a problem of data mismatch 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 future when GSTR-1A and 'Invoice Management System' (IMS) become stable, the facility to edit GSTR-3B will not be required.
'Input Tax Credit' scam
GSTR-1A gives taxpayers the option to amend 'outward supplies' or 'sales return form' (GSTR-1), while GSTR-3B is used for monthly tax payments. In addition, GSTN will launch IMS from October 1 which will facilitate taxpayers to avail appropriate 'input tax credit' (ITC) by matching the records/bills issued by their suppliers. IMS will also enable taxpayers to amend/revise bills with their suppliers through the platform.