GST Registration: Many types of news about GST keep coming out across the country. Many times fake GST is also seen. In view of this, a big step has been taken by the Central Government.
Fake GST Registration: Many types of news about GST keep coming out across the country. Many times fake GST is also seen. In view of this, a big step has been taken by the Central Government. The tax officials will launch a special campaign for two months to detect fake GST registrations and identify fraudsters who take undue advantage by claiming bogus Input Tax Credit (ITC).
Fake ITC claims
After making fake registration on the Goods and Services Tax (GST) platform, fraudsters claim ITC on the basis of fake receipts and deposit the amount in their account without supply of any kind of service or product. .
Loss of government revenue
The GST Policy Cell of the Central Board of Indirect Taxes and Customs (CBIC) said that the problem of wrongly availing input tax credit through fake registration and issue of fake receipts has become serious. In this, unscrupulous people cause huge loss of revenue to the government through dubious and complex transactions.
CBIC gave information
CBIC said in a notification that all the tax departments of the Center and the states will run a special campaign in this regard from May 16 to July 15. During this, along with identifying suspicious GST accounts, necessary steps will be taken to weed out fake bills from the GST Network (GSTN). At present, there are 1.39 crore taxpayers registered under the GST system across the country. Out of these, detailed data analysis and risk parameters on GSTN will be used to identify bogus registrations.
Verification of GST number
Steps will be taken to verify the suspected GST Identification Number after receiving the information of fake registration. If during verification the concerned taxpayer is found to be fictitious then immediate steps will be taken to cancel that registration. The growing problem of creating fake GST accounts in the names of other people was noticed in the national coordination meeting of the GST officers of the Center and the States held on 24 April.
