GST intelligence detects tax evasion of Rs 1.2 trillion so far since 2020

This comes in the backdrop of a fresh special drive being undertaken by both Central and State authorities to identify and weed out fake registrations

The Directorate General of GST Intelligence (DGGI) has detected tax evasion of Rs 1.2 trillion using fake input tax credit (ITC), since 2020 to date, with special emphasis being laid on identifying and apprehending the masterminds and disrupt syndicates, operating across the country, the finance ministry said in a release on Tuesday.

The Goods and Services Tax (GST) intelligence department has identified about 59,000 potential fake firms for verification and further inquiry, while 170 individuals involved in fraud have been apprehended. This was revealed during the national conference of enforcement chiefs of GST, following which the ministry’s release was issued.

This comes against the backdrop of a special drive being undertaken by both the Centre and State to identify and weed out fake registrations. The two-month special all-India drive was launched on August 16 to detect suspicious/fake GSTINs, conduct requisite verification and take remedial action to weed out these fake billers from the GST ecosystem in order to safeguard government revenue.

While addressing the conference, Revenue Secretary Sanjay Malhotra stressed the importance of maintaining a fine balance between enforcement actions and ease of doing business. He exhorted Central and State GST formations to focus on fake registrations during this special drive and stressed the need for tracking the masterminds and beneficiaries of fake ITC so that strict action is taken to have the necessary deterrence effect.

Malhotra said that recent changes implemented in the GST returns such as GSTR-1A would further aid the efforts towards tackling GST evasion in a systematic manner.

During the event, Sanjay Agarwal, chairman, Central Board of Indirect Taxes and Customs (CBIC), advised the enforcement units to focus on real evasion rather than interpretative issues and general industry practice. “Some of the best practices/guidelines issued to bring uniformity in action and ensuring ease of doing business were also deliberated upon,” ministry release said.