Thursday , December 5 2024

18 thousand fake companies formed for GST evasion identified, accused of tax evasion of Rs 25 thousand crores

5f00708ad522f5847f584dfb8b50d611

New Delhi, 5 November (Hindustan Reporter). Action has been initiated against about 18 thousand fake companies formed with the intention of evading GST. It is being claimed that tax worth about Rs 25,000 crore has been evaded through these 18 thousand companies. These companies have been identified on the basis of physical verification.

According to the information received in this regard, in the special drive being run across the country against tax evasion through fake companies, about 73 thousand such companies were primarily identified, which were wrongly availing the benefit of input tax credit. There was suspicion of lifting. During the investigation, it was found that out of these 73 thousand companies, about 18 thousand companies did not exist. These companies were established only on paper but input tax credit was being availed through them. Thus the fiscal exchequer was being hurt unfairly.

Under this campaign started to curb fake companies, physical verification was made the main method of investigation. Under this campaign, from August 16 to October 31, the physical existence of about 18 thousand companies was not found. Earlier, in the first phase of the campaign conducted between May 16, 2023 and July 15, 2023, a total of 21,791 fake companies were detected, through which tax evasion of Rs 24,010 crore was detected.