look news india
New Delhi: Nearly 10,700 fake companies registered under GST have been detected, involving tax evasion of Rs 10,179 crore. Aadhaar authentication for goods and services tax (GST) registration is already implemented in 12 states and will be expanded to four more states by October 4, Central Board of Indirect Taxes and Customs member Shashank Priya said.
Eventually, 20 states, including Madhya Pradesh, Rajasthan, Assam, Tamil Nadu, Uttar Pradesh and Haryana, will start Aadhaar authentication. Speaking at an event organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), Shashank Priya said that in future, tax authorities will also be able to impose certain restrictions on new taxpayers based on their risk profile.
Informed sources said the government is taking targeted steps to check fake GST registrations and more physical verifications are being carried out. The second all-India drive against fake registrations, which began on August 16, will continue till October 15. Tax officials have identified 67,970 Goods and Services Tax Identification Numbers (GSTINs). Of these, 59% or 39,965 numbers have been verified till September 22. Of these, 27% entities were found to be non-existent. This percentage is almost the same as the previous drive. We have detected tax evasion of Rs. 10,179 crore. Input tax credit of Rs. 2,994 crore has been stopped. Apart from this, Rs. 28 crore has also been collected (in the second drive till September 22).
The first campaign against fake registration was conducted between May 16 and July 15, 2023. In which a total of 21,791 GST registered units were found which did not exist. Last year, the first special campaign revealed suspected tax evasion of Rs 24,010 crore. 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.