GST – 29K bogus firms involved in ITC evasion of Rs 44,015 crore detected so far

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GST – 29K bogus firms involved in ITC evasion of Rs 44,015 crore detected so far

By TIOL News Service

NEW DELHI, 2024: TO curb frauds in Goods and Services Tax (GST) and increase compliance, the GST formations, under the Central Board of Indirect Taxes and Customs (CBIC) and the State/UT Governments, across the country are carrying out a focused drive on the issue of non-existent / bogus registrations and issuance of fake invoices without any underlying supply of goods and services.

Since the initiation of the special drive against fake registrations in mid-May 2023, a total of 29,273 bogus firms involved in suspected Input Tax Credit (ITC) evasion of Rs. 44,015 crore have been detected. This has saved Rs. 4,646 crore of which Rs. 3,802 crore is by blocking of ITC and Rs. 844 crore is by way of recovery. So far, 121 arrests have been made in the cases.

In the quarter ending December, 2023, 4,153 bogus firms that involved suspected ITC evasion of around Rs. 12,036 crore were detected. 2,358 of these bogus firms were detected by the Central GST Authorities. This has protected revenue of Rs. 1,317 crore of which Rs. 319 crore has been realised and Rs 997 crore has been protected by blocking ITC. 41 persons were arrested in these cases. 31 of these arrests were by Central GST Authorities. State wise details are annexed.

The Government has taken various measures to strengthen the GST registration process. Pilot projects of biometric based Aadhar authentication at the time of registration have been launched in the States of Gujarat, Puducherry and Andhra Pradesh.

Besides, the Government has endeavoured to curtail evasion of tax through measures such as sequential filing of GST returns, system generated intimation for reconciliation of the gap in tax liability in GSTR-1 & GSTR- 3B returns and of the gap between ITC available as per GSTR-2B & ITC availed in GSTR-3B returns, use of data analytics and risk parameters for detection of fake ITC, etc.

Action against bogus firms during Quarter ending in December 2023

Name of the State/UT

Number of bogus firms detected  Tax Evasion suspected (Rs Cr.) ITC amount blocked / recovered ( Rs Cr.) Arrests Made 

Fake firms per lakh registered firms 

Andhra Pradesh

19 765 11 0

5

Arunachal Pradesh

0 13 14 0 0
Assam 19 116 67 0

8

Bihar

30 148 88 0 5
Chandigarh 2 5 1 0

6

Chhattisgarh

26 83 34 1 15
Dad. &Ngr Haveli 0 0 0 0

0

Delhi

483 3028 90 11 61
Goa 4 29 0 0

9

Gujarat

178 445 25 3 15
Haryana 424 624 76 3

81

Himachal Pradesh

4 14 4 0

3

J&K

3 1 0 0

2

Jharkhand

23 110 2 0 11
Karnataka 223 397 59 2

22

Kerala

42 152 4 0 10
Ladakh 0 0 0 0

0

Madhya Pradesh

70 158 22 1 13
Maharashtra 926 2201 102 11

54

Manipur

0 0 0 0 0
Meghalaya 0 5 0 0

0

Mizoram

0 0 0 0 0
Nagaland 0 0 0 0

0

Odisha

138 337 7 0 42

Puducherry

2 2 0 0

8

Punjab 82 75 4 1

21

Rajasthan

507 197 31 1 59
Sikkim 2 2 2 0

18

Tamil Nadu

185 494 374 1 16

Telangana

117 536 235 1

23

Tripura 9 20 0 0

29

Uttar Pradesh

443 1645 44 5 24
Uttarakhand 66 88 0 0

33

West Bengal

126 343 18 0 17

And. & Nicobar Is

0 0 0 0 0

Lakshadweep

0 0 0 0

0

Total

4153 12036 1317 41

29

 

 

 

 

 

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