Home GST Tax Evasion of Rs. 24,000 crore and 21,791 fake GST Registrations detected in a Special Drive: FM

Tax Evasion of Rs. 24,000 crore and 21,791 fake GST Registrations detected in a Special Drive: FM

Tax Evasion of Rs. 24,000 crore and 21,791 fake GST Registrations detected in a Special Drive: FM

Tax Evasion of Rs. 24,000 crore and 21,791 pretend GST Registrations detected in a Particular Drive: FM

Finance Minister Nirmala Sitharaman stated on Tuesday that in a two-month particular marketing campaign, GST authorities found 21,791 pretend GST registrations and practically Rs. 24,000 crore in suspected tax evasion.

In a written response to a Rajya Sabha query, the minister said that with a purpose to shield the pursuits of trustworthy taxpayers and keep away from excessive hardship to taxpayers, directions have been issued on occasion directing officers to train due warning and care within the train of powers reminiscent of summons, provisional attachment of property, blocking of tax credit score, and so forth.

“A complete of 21,791 entities with GST registration (11,392 entities beneath state tax jurisdiction and 10,399 entities beneath CBIC jurisdiction) have been found to be non-existent. In the course of the particular effort, a complete of Rs 24,010 crore of suspected tax evasion was found (state – Rs 8,805 crore + Centre – Rs 15,205 crore),” Sitharaman added.

The minister was responding to a query in regards to the variety of firms recognized as having pretend registrations and the whole quantity of evasion found throughout the Central Board of Oblique Taxes and Customs (CBIC) particular drive towards pretend GST registrations from Might 16 to July 15, 2023.

In response to a query about whether or not the federal government has thought-about the challenges confronted by e-commerce enterprises in acquiring GST registrations, significantly these working in digital areas, Sitharaman said that, as a result of distinctive nature of e-commerce operators, a simplified process for e-commerce operator registration has already been notified.

It states that when an e-commerce operator recordsdata for registration in a state or Union Territory the place she or he doesn’t have a bodily presence, she or he might accomplish that by offering details about the foremost workplace located in one other state or Union Territory.

Moreover, modifications to the GST Guidelines have been applied to tighten the registration course of, together with biometric-based Aadhaar authentication for high-risk registrants, in addition to the verification of the unique copy of the paperwork.

Gujarat has initiated a pilot experiment on this regard. The trial scheme was expanded to Puducherry in July and Andhra Pradesh in November.

Moreover, the registered particular person’s checking account particulars, identify, and PAN have to be supplied inside 30 days of registration or earlier than submitting the assertion of outward provide, whichever is sooner.

Entities who don’t present the info of legitimate financial institution accounts inside the timeframe specified can be instantly suspended by the system. Nevertheless, if the registered individuals later adjust to this requirement, the system will mechanically revoke the system-based suspension.


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