Once identified, both central and state indirect tax administrations will take appropriate action, according to an individual familiar with the matter
Once identified, both central and state indirect tax administrations will take appropriate action, according to an individual familiar with the matter
NEW DELHI: Central and state indirect tax authorities will launch a two-month drive from 16 May to weed out entities that secure Goods and Services Tax (GST) registrations wrongfully, generate fake invoices and pass on bogus tax credits to other entities without any actual sales.
A source familiar with the matter reports that the campaign aims to address the significant issue of fraudulent input tax credits, which has led to a loss of government revenue. The Central Board of Indirect Taxes and Customs (CBIC) has reportedly instructed senior field officers to carry out the initiative, according to the anonymous source.
An email sent to the finance ministry on Friday seeking comments for the story remained unanswered at the time of publishing.
The campaign that will run till mid-July aims to detect suspicious or fake GST identification numbers, conduct the required verification and weed out 'fake billers' from the GST eco-system and safeguard government revenue, said the person.
GSTN, the company responsible for processing GST returns, plans to employ data analytics to detect fake registrations. The system will use a set of predetermined risk parameters to identify such activity. Once identified, both central and state indirect tax administrations will take appropriate action, according to an individual familiar with the matter.
The move comes at a time the government is keen to widen the tax base and sustain the buoyancy in GST collections.