FAKE GST
8th year of GST: Friendlier, simpler regime ahead? What the future likely holds
It would be unreasonable to expect very quick results. While concrete outcomes on this agenda are likely to be backloaded within the financial year, clear timelines and a glide path of transition may well emerge sooner.
GST simplified compliance, improved tax buoyancy; fake ITC generation still a challenge
Introduced seven years ago, the Goods and Services Tax (GST) has streamlined compliance and boosted tax revenues, but challenges persist with fake invoices and fraudulent registrations causing tax evasion concerns. Despite this, GST has simplified the tax regime, increased taxpayer numbers, and improved tax buoyancy and state revenues. However, efforts to combat evasion are ongoing, with the need for further measures such as operationalizing the GST appellate tribunal.
Man arrested in Rs 10,000 cr GST fraud case after nine months on the run
A 31-year-old man, Babar Khan, evading police for nine months, was arrested in connection with a Rs 10,000-crore GST fraud across India. Khan allegedly set up fake firms using stolen or forged ID cards to fraudulently claim input tax credit. Noida police initially busted the gang last year, which operated by registering thousands of companies under false identities to generate e-way bills and claim government benefits.
GST Council Meeting: Railway Platform tickets exempted from GST, biometric authentication push & other key decisions
At its 53rd meeting in New Delhi, the GST Council decided to implement nationwide biometric authentication to combat fake invoicing. Finance Minister Nirmala Sitharaman announced retrospective amendments to input tax credit timelines under the CGST Act from July 2017. The meeting, the first since the new government took office, also addressed various operational issues and recommended uniform GST rates for milk cans and carton boxes.
Customs department warns against new parcel fraud:'Drug was found in your parcel, will inform police'; how to save yourself from this fraud
New parcel scam: The Central Board of Indirect Taxes and Customs (CBIC) has stated that several people complained to them about a fake parcel scam being conducted in the name of customs. In this scam you get a call from a fake officer informing you that cocaine or other drugs have been found in a parcel with your name. Read to know more about this scam and how to stay safe.
Reduce GST slabs, hike exemption threshold for firms with up to Rs 1.5 cr turnover: GTRI
The Global Trade Research Initiative (GTRI) proposed several reforms to enhance India's Goods and Services Tax (GST) system on its 7th anniversary. Recommendations include raising the GST exemption limit to Rs 1.5 crore for firms (up from Rs 40 lakh), simplifying the tax structure by reducing slabs and eliminating state-wise registration requirements. GTRI highlighted GST's role as the world's largest indirect tax platform, with over 1.46 crore registrations.
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Strategic reforms in customs duties, GST, commerce to push India's inclusive growth, says GTRI
The think tank suggested increasing the GST exemption limit for a firm's annual turnover from 40 lakh to 1.5 crore as this will be transformative for India's MSME sector, promoting job creation and growth. Firms with less than Rs 1.5 crore turnover make up over 80 per cent of registrations but contribute less than 7 per cent of the tax collected, it said adding a yearly turnover of 1.5 crore equals 12-13 lakh monthly turnover, translating to just Rs 1.2 lakh at a 10 per cent profit margin.
Man files ITR, finds company with Rs 9 crore turnover opened in his name
Chandan Soni, a resident of Gwalior, discovered that his personal details – PAN card and Aadhaar card – had been misused to create a fraudulent GST number and a fake company in his name. This company, "MG SALES", even showed a fabricated turnover exceeding Rs 9 crore. Now, the Delhi Police's Economic Offences Wing is investigating this identity theft and potential financial crime.
‘There is no way I can go back to NDA after PM called me a nakli santaan’, says Uddhav Thackeray
Uddhav Thackeray, the chief of Shiv Sena (UBT), firmly rejects any chance of making amends with the Bharatiya Janata Party (BJP) in Mumbai during the preparations for the last phase of voting for 13 seats in Maharashtra. He criticizes PM Modi's remarks and emphasizes on public impact over political maneuvering.
GST National Coordination meeting on Friday may discuss tightening noose on fake registrations
Central and state GST officers will convene to discuss various issues, including stricter registration norms to combat fake companies evading taxes. This meeting follows record-high GST collections of Rs 2.10 lakh crore in April, driven by economic momentum and enhanced scrutiny. Among the topics on the agenda are tightening GST registration to deter fraudulent companies and tracking the money trail of GST fraud masterminds.
April GST numbers are here and they're off the charts
India's economy is estimated to have grown 7.6% in FY24. The IMF expects India's GDP to expand 6.8% in FY25, retaining its status as the world's fastest-growing major economy. Total GST collection was ₹1.78 lakh crore in March while the monthly average for FY24 was ₹1.68 lakh crore.
Rs 15,000 crore GST fraud: How a businessman cheated via 3,300 shell companies, 35 fake firms and electricity bills
Delhi-based businessman Tushar Gupta has been arrested in connection with a Rs 15,000 crore GST fraud exposed last year. Gupta was part of a syndicate that used fake documents to establish over 3,300 shell companies, generating e-way bills for transporting goods or services and claiming input tax credit (ITC).
Tax evasion of Rs 730 cr by TMT bar makers detected
All iron and steel items are subject to 18% GST. The Meerut unit of DGGI had received intelligence that several TMT bar makers were filing documents on behalf of non-existent companies naming them as suppliers and claiming input tax credit. The official quoted above said these companies outsourced the transportation of non-duty paid goods from the factory gate to many dealers and recipients, without paying any duty to the authorities.
Meerut CGST busted a Rs 1,000 crore ITC fraud syndicate
Tax officials have uncovered a syndicate that fraudulently claimed Input Tax Credit of over Rs 1,000 crore through 232 fake firms. The investigation, initiated by the CGST Commissionerate in Meerut, found that the syndicate used fake billing to claim ITC. The firms, registered across the country, passed an inadmissible ITC of around Rs. 1,048 crore. The syndicate also used FFMCs for routing funds, and the mastermind, Praveen Kumar, was found to be filing GST returns for the fake firms. Several bank accounts used by the syndicate have been attached.
Sitharaman to inaugurate conference of GST enforcement chiefs on Monday
Finance Minister Nirmala Sitharaman will inaugurate a conference of enforcement chiefs of state and central GST officers to tackle tax evasion. The conference will focus on combating GST evasion, examining current challenges, discussing successful methods, sharing best practices, fostering synergy, leveraging technology and data, striking a crucial equilibrium, and embracing cooperative federalism to strengthen the GST administration.
Karnataka officials bust fake ITC claim racket involving 100 firms with Rs 1,008 cr in turnover
The commercial taxes department in Karnataka, India, has arrested four individuals connected to a scrap goods racket that engaged in fictitious transactions to claim input tax credit (ITC). The network included about 100 firms with a turnover of INR 1,008 crore (about $133 million) and taxes of about Rs 180 crore ($23.7 million).
DGGI cautioned taxpayers about fake summons
The Central Board of Indirect Taxes and Customs (CBIC) has issued a cautionary advisory to taxpayers regarding fake summons sent by fraudsters. Taxpayers are urged to verify the authenticity of any summons received by checking the official CBIC website and reporting suspicious notices to the jurisdiction office immediately. This advisory comes after the Directorate General of GST Intelligence (DGGI) observed instances of individuals sending fake summons to taxpayers, intending to commit fraud.
DGGI busts 1,700 fake ITC cases worth Rs. 18,000 crore in Apr-Dec, arrests 98
DGGI has busted 1,700 fake Input Tax Credit (ITC) cases worth Rs 18,000 crore and arrested 98 people. Using data analysis and advanced tools, DGGI apprehended tax evaders involved in creating fake firms and companies. In one case, a firm in Haryana generated E-way bills and created Rs. 1,100 crore fraudulent ITC.
GST Council may consider pan-India rollout of biometric-based authentication for registration: CBIC
Goods and Services Tax (GST) authorities have so far been using OTP-based Aadhaar authentication to establish the identity of the applicants, seeking registration. Since the launch of GST on July 1, 2017, tax officers have detected fake ITC of Rs 1.42 lakh crore and recovered Rs 13,000 crore. As many as 1,350 people have been arrested for defrauding the exchequer.
Fake ITC Claim of Rs 180 Crore: Karnataka’s GST authorities detect 100 bogus firms, arrest mastermind
Karnataka's Commercial Taxes Department, in collaboration with Kerala State GST authorities, has arrested Mohammed Siddiq for his role as a key mastermind in a multi-state GST fraud. The operation exposed a significant network involved in acquiring dummy GST registrations through forged documents and facilitating a scrap business across Kerala, Tamil Nadu, and Karnataka.
GST officers detect over 29,000 bogus firms involved in fake ITC claims of Rs 44,000 cr
To curb fraud 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 service.
21,791 fake GST registrations, suspected tax evasion of Rs 24,000 cr detected in special drive: FM Sitharaman
Finance Minister Nirmala Sitharaman informed the Rajya Sabha that during a two-month special drive against fake GST registrations, GST officers detected 21,791 entities with fake registrations, leading to the discovery of over Rs 24,010 crore of suspected tax evasion.
DGGI detects Rs 1.36 lk cr tax evasion in H1 of FY24
The DGGI has till date, detected more than 6,000 fake ITC cases involving more than ₹57,000 crore GST evasion with the arrest of 500 persons from April 2020 to September 2023. In the current fiscal year alone, a total of 91 fraudsters were apprehended.
New cover story: 30% commission cap likely in credit life policies
Credit life insurance is a type of life insurance designed to help in loan repayment if the insured person passes away before the loan is fully repaid. While this policy is optional, if it is chosen, its cost is added to the loan's principal amount.
Rs 30,000 crore tax heist? The modus operandi of insurers, agents and banks
It all began when the Goods & Services Tax (GST) authorities informed the Insurance Regulatory and Development Authority of India (IRDAI) last year about alleged malpractices by more than a dozen insurance companies in the allocation of commission to their agents. The I-T department and the DGGI started probing these companies, the DGGI for allegedly fake input tax credit claims while the I-T department for alleged tax evasion through violation of the IRDA norms on commission payments.
GSTN enables geocoding of GST address for all states and UTs
"GSTN is pleased to inform that the geocoding functionality for the "Additional Place of Business" address is now active across all States and Union Territories," GSTN said in an advisory issued on Wednesday.
GST fraud: Taxmen arrest two in Bengaluru for fake ITC claims using 30 shell companies
Two individuals have been arrested in Karnataka for allegedly cheating the government out of crores of rupees through a fake GST bill racket. The accused allegedly operated a syndicate that helped companies in the manpower and labour supply industry claim input tax credit based on fictitious transactions. The authorities suspect a revenue loss of around Rs 90 crore and are currently investigating transactions worth Rs 525 crore.
GST officers arrest 3 for fraudulent ITC claims of Rs 557 cr, creating 246 fake firms
Indian GST officers have uncovered two fraudulent billing syndicates comprising 246 fake entities that were involved in passing input tax credit worth $74.3m. The officers have arrested three men, and discovered forged stamps, debit and credit cards, chequebooks, Aadhaar cards and PAN card.
The seven-year glitch: Inside the govt's war to plug the GST leakage
India's Goods and Services Tax (GST) regime needs to plug leakages that cause tax evasion, which has increased in recent years despite stable collections, officials have said. The number of cases of GST evasion detected has increased to about 14,000 this year from 12,574 in 2021-22 and 12,596 in 2020-21. The growing evasion will, however, fuel further growth of GST collection if it can be stopped through efforts such as the use of end-to-end analytics examining entire supply chains and gap analyses of taxes paid in those chains.
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