The Indian government has recently announced a two-month special campaign to detect fake Goods and Services Tax (GST) registrations and curb fraudsters who claim bogus Input Tax Credit (ITC) by taking undue advantage.
The Central Board of Indirect Taxes and Customs (CBIC) has noted that fraudulent ITC claims have become a serious issue, leading to a significant loss of revenue for the government through dubious and complex transactions.
Fake GST registrations have become rampant across the country, with many unscrupulous people exploiting the system by issuing fake receipts and depositing the amount in their account without any actual supply of goods or services.
In light of this, the tax officials will launch a special campaign from May 16 to July 15, targeting suspicious GST accounts and taking necessary steps to eliminate fake bills from the GST Network (GSTN).
The CBIC has stated that it will use detailed data analysis and risk parameters on GSTN to identify bogus registrations, which will then be verified for authenticity.
If found fictitious, immediate steps will be taken to cancel such registrations. Currently, there are 1.39 crore taxpayers registered under the GST system across the country.
The issue of creating fake GST accounts in the names of other people was highlighted during the national coordination meeting of GST officers of the Center and the States held on April 24.
This has prompted the government to take stringent measures to curb fake GST registrations and ITC claims, ensuring that the tax system remains transparent and free from fraudulent practices.
In conclusion, this special campaign by the Modi government is a positive step towards maintaining the integrity of the GST system and preventing revenue losses due to fraudulent activities.
