Home GST GST Dept Records 21,791 Cases of Fake Registrations During Special Drive

GST Dept Records 21,791 Cases of Fake Registrations During Special Drive

GST Dept Records 21,791 Cases of Fake Registrations During Special Drive
21,791 Cases and INR 24,000 Crore GST Evasion During Special Drive

Finance Minister Nirmala Sitharaman introduced on Tuesday that in a particular two-month drive, GST officers have uncovered 21,791 circumstances of pretend GST registrations and suspected tax evasion totalling over 24,000 crore.

In a written response to a query raised within the Rajya Sabha, the minister said that directions have been issued to GST officers to train warning and care when using powers similar to summons, provisional property attachment, and tax credit score blocking. These measures intention to guard trustworthy taxpayers and stop extreme hardships on taxpayers.

Out of the recognized entities, 21,791 (11,392 referring to state tax jurisdiction and 10,399 involved to CBIC jurisdiction) with GST registrations had been discovered to be pretend GST registrations. Sitharaman said {that a} complete of 24,010 crore (8,805 crore from the states and 15,205 crore from the Centre) in suspected tax evasion was detected through the motion.

The minister’s reply was in response to a query concerning the variety of companies recognized with pretend registrations and the full evasion quantity found through the particular marketing campaign towards fraudulent GST registrations carried out by the Central Board of Oblique Taxes and Customs (CBIC) from Might 16 to July 15, 2023.

Concerning the problems encountered by e-commerce firms in getting GST registration, significantly these operating their companies on on-line platforms. Sitharaman talked about {that a} simplified registration course of for e-commerce gamers has already been taken into consideration, contemplating their distinctive means of functioning.

This process permits e-commerce gamers to use for registration in a state or Union Territory the place they lack a bodily location by offering particulars of their fundamental enterprise working place of job situated in one other state or Union Territory.

Furthermore, there have been some amendments made within the GST guidelines to boost the registration course of, together with the implementation of biometric-based Aadhaar authentication for registrants below the radar of high-risk, together with doc verification.

The implementation of this pilot mission commenced in Gujarat and was subsequently expanded to incorporate Puducherry in July, adopted by Andhra Pradesh in November.

Moreover, entities are required to furnish particulars of their checking account, identify, and Everlasting Account Quantity card inside 30 days of registration approval or earlier than submission of the assertion of outward provide, whichever comes earlier.

Failure to offer legitimate checking account particulars inside the stipulated time-frame will lead to automated suspension by the system. Nonetheless, if the registered individuals adjust to this requirement afterwards, the system-based suspension might be robotically accepted.


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