FRAUDULENT GST NUMBER
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.
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.
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.
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.
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.
- Go To Page 1
GST officials detect 14,597 tax evasion cases in Apr-Dec 2023
GST officers in India are using data analytic and artificial intelligence tools to identify taxpayers suspected of fake input tax credits. During April-December 2023, 14,597 cases of GST evasion were registered, with Maharashtra having the highest number (2,716). The use of NETRA, BIFA, and ADVAIT tools has helped detect fake ITC cases worth Rs 18,000 crore and arrest 98 fraudsters.
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.
What is Mera Bill Mera Adhikaar? How lucky draw works, chance to win Rs 1 crore price structure
Mera Bill Mera Adhikaar: The initiative will apply to all business-to-consumer invoices provided to customers by GST-registered suppliers in participating states. A lucky draw must have at least Rs 200 worth of invoices to qualify.
DGGI finds 8k fraud ITC claim cases
The director general of goods and services tax intelligence has detected around 8,000 cases of fraudulent input tax credit claims and is issuing notices to the involved entities. The majority of these cases included fake suppliers with GST registrations and fake invoices. The GST authorities have carried out a two-month crackdown on companies involved in the supply of fake bills and invoices to avail credit and have started the second phase to target entities that availed fake invoices.
Amit Mitra highlights 'countrywide' GST frauds; urges Sitaraman to call Council meet
Alleging that GST frauds are proliferating across the country and MSMEs are facing problems due to a web of regulations, Dr Amit Mitra, principal chief advisor to West Bengal Chief Minister Mamata Banerjee, on Monday urged Union Finance Minister Nirmala Sitharaman to convene a GST Council meeting to discuss these issues.
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.
DGGI busts fake GST bill operator gang
The Directorate General of GST Intelligence (DGGI) has busted a gang of ‘fake GST bill operators' who used to run a syndicate to help companies, especially in the metal and scrap industry, to avail of input tax credit (ITC). DGGI’s probe has revealed that around 160 companies were floated, using documents that were fraudulently procured from people by promising to help them get government’s Covid relief or employment.
Multi-crore GST scam: Three more held, total arrests 18
The Noida Police has arrested three additional individuals in a multi-crore goods and services tax (GST) scam, taking the total number of arrests to 19. The scheme has caused a significant loss of revenue to the government. The criminal activity involved thousands of fraudulent companies being set up with forged Aadhar cards, fake invoices, and input tax credits. The three most recent arrests saw the police identify the trio as being part of a larger syndicate.
Over 12k fake entities in GST; CBIC plans biometric authentication, tighter return filing
The Central Board of Indirect Taxes and Customs (CBIC) in India is planning to introduce biometric authentication and geo-tagging in an effort to crack down on GST fraud. The biometric authentication will be used to verify the identities of individuals connected to businesses that are suspected of fraudulent activity. The CBIC chief, Vivek Johri, said that there are around 12,500 bogus entities that have been identified as claiming fake Input Tax Credit (ITC).
GST officers bust 304 syndicates involving Rs 25,000 crore fake ITC claims
In an ongoing drive against bogus firms, GST officers have busted 304 syndicates involving 9,000 fake GST identification numbers (GSTINs) and fraudulent input tax credit claims of Rs 25,000 crore. CBIC chairman Vivek Johri highlighted that only 40% of corporate income taxpayers are registered under GST, urging businesses to get registered and benefit from the tax regime.
6 years of GST: Rs 1.5 trillion monthly tax revenues becomes 'new normal', focus on curbing tax evasion
Thinktank Global Trade Research Initiative (GTRI) said the most critical pending GST reform is upgradation of GST Network to prevent fake supplies and fraudulent claims of Input Tax Credit (ITC).
GST Council likely to vet CBIC's plan for additional validations in return filing to check evasion
The CBIC last week introduced validation and risk rating for GST registrations, as it looks to curb fake entities issuing fake bills just to claim ITC benefit and defraud the exchequer. The official said the strategy to go in for additional validation both at the time of registration and filing of return is aimed at eliminating tax evasion.
DGGI Gurugram bust fake ITC racket worth Rs 863 crore, 2 held
"Huge number of forged/ morphed/ fake soft copies of documents like rent agreements, electricity bills, aadhar card, driving license, PAN card, etc were detected in the laptops resumed from this secret office, which were used to create and operate their fake entities," finance ministry said in a statement issued on Thursday.
Undue harassment of genuine MSME online sellers by GST officials 'not justified', says industry
MSME firms, particularly online sellers, are reportedly facing increased challenges with GST compliance. The Central Board of Indirect Taxes and Customs' special drive to combat fake GST registration has raised concerns among industry players who cite growing cases of harassment by tax officials.
Crackdown on tax violations: 10,000 fraud GST registrations turn up in first week of drive
In many cases, officials found forged electricity bills, property tax receipts and rent agreements were used as proof of principal place of business to obtain GST registration.
Centre, state tax officers launch special drive to identify fake GST registration, curb evasion
The GST Policy Wing had earlier this month written to Principal Chief Commissioners of Central Tax highlighting that fake/ non-genuine registrations are being used to fraudulently pass on input tax credit to unscrupulous recipients by issuing invoices without any underlying supply of goods or services or both.
Insurance penetration cannot be done by merely crowding market with large number of players: AIIEA gen secy Mishra
Mishra said the Centre has in the recent budget made it clear that it intends to migrate to an exemption-free tax regime. "This new tax regime proposed by the finance minister offers no incentives for savings. The insurance industry has for years, been demanding, for raising limits and introducing a separate tax incentive under 80 (C) to make insurance products attractive.
Taxmen to conduct two-month special drive to weed out fake GST registrations, identify masterminds
This menace of fake registrations and issuance of bogus invoices for passing fake ITC has become a serious problem, wherein fraudulent people engage in dubious and complex transactions, causing revenue loss to the government, the GST Policy wing of the CBIC said.
GST evasion: Taxmen using data analytics to identify 'missing link' in supply chain
The modus operandi adopted by fraudsters included short payment of tax by undervaluing taxable goods and services, wrong availment of exemption notifications, wrong availment of the input tax credit, non-payment of tax on supply of taxable goods and services (clandestine removal), and fraudulent availment of the input tax credit on the basis of invoices from fake cos.
GST evasion detection nearly doubles to Rs 1.01 lakh cr in FY23
"DGGI officers have detected evasion to the tune of Rs 1,01,300 crore in 2022-23. Of this, recovery of Rs 21,000 crore have been made," the official told PTI. In 2021-22, DGGI, the investigative agency under the Goods and Services Tax (GST) regime, detected evasion of over Rs 54,000 crore and made a tax recovery of over Rs 21,000 crore.
How to identify a fake GST bill and report it: Here is the complete step-by-step guide
A GST invoice is generated by a supplier or a seller to the buyer of the goods and services. The bill has all the information including identification of buyer and seller, name of the product, description, quantity of goods/services purchased/ details of supplier, date of purchase, discount, etc.
Co-working cos, tax experts ask government to simplify GST registration
Co-working operators and tax experts have urged the Centre for a simplified GST registration for firms operating from a shared space. The request comes after GST officers sought extensive documentation, such as registered leases and clearances from original owners, to prevent firms from using the coworking setup only for GST registration.
GST prosecution threshold up; some offences decriminalised
The 48th GST Council meeting, held virtually on Saturday after a gap of six months, deferred a decision on imposing the levy on online gaming, horse racing and casinos as well as the setting up of appellate tribunals.
Load More
