The detection of the network of entities was done by Mumbai zone officials
NEW DELHI : Goods and Services Tax (GST) officials have bust a network of entities that deal in fake transactions, leading to detection of ₹834 crore in tax evasion and arrest of six persons, according to an official update.
The detection of the network of entities was done by Mumbai zone officials. The tax authority had launched a special drive to identify leads for investigation based on data analytics. This has brought to light 17 fake networks in the fortnight from 15 September to 1 October, CBIC said in an update posted on its website. Of the ₹834 crore of tax evasion detected, ₹1 crore has been recovered, so far.
The detection the network of entities is the latest in the indirect tax administration's anti-evasion drive, which relies on extensive use of data analytics and information gathering from various sources. GST authorities have been gradually tightening the compliance requirements and leveraging technology enabled features of the indirect tax system to plug revenue leakage.
Last month, the Directorate General of GST Intelligence (DGGI) detected instances of clandestine removal of tobacco and irregular utilization of tax credits. Officials in Hyderabad detected a case of ₹118 crore of non-payment of GST relating to payment received for transfer of development rights, the update said.
The anti-evasion drive comes at a time Central and state tax authorities are not in a position to raise taxes for revenue mobilization. The option before them is to widen and deepen the tax net. Increasingly, various agencies of the central and state governments have been working together to detect mismatches in the declarations made by assessees, which help in identifying suspicious transactions.
