Fake registration drive: GST officers detect 10,700 bogus firms, over Rs 10k cr evasion

GST Officers Identify 10700 Fake Registrations Resulting in Rs 10179 Crore Tax Evasion

New Delhi: In a significant crackdown on tax evasion, GST officers have uncovered around 10,700 fraudulent registrations under the Goods and Services Tax (GST) system, leading to an estimated tax evasion of ₹10,179 crore. This discovery comes as part of a nationwide initiative targeting shell companies set up to defraud the government.

Shashank Priya, a member of the Central Board of Indirect Taxes and Customs (CBIC), revealed that the ongoing drive aims to root out fake companies that undermine the integrity of the tax system. The CBIC has already implemented Aadhaar authentication for GST registration in 12 states, with plans for four more states to adopt this measure by October 4. This step is designed to enhance the verification process for new registrations and prevent fraudulent activities.

The identification of these bogus firms highlights the challenges faced by tax authorities in maintaining compliance within the GST framework. The government has been actively working to strengthen regulations and increase scrutiny of registrations to safeguard revenue.

Recent reports indicate that the number of fake registrations has been a growing concern, with various states reporting similar findings. The Ministry of Finance has emphasized the need for robust measures to combat tax evasion and ensure that legitimate businesses are not adversely affected by the actions of fraudulent entities.

As authorities ramp up their efforts, they urge legitimate businesses to comply with GST regulations and report any suspicious activities. The CBIC's initiative reflects its commitment to promoting transparency and accountability in the taxation process, which is vital for fostering a fair business environment in India.