The GST authorities have noticed that numerous individuals, whose GST registrations were previously revoked due to fraudulent activities, persist in operating their businesses and levying taxes without restraint.
In light of information from reliable sources, the central government, in coordination with state governments, is poised to take stringent measures against these taxpayers to address this matter.
During the upcoming national tax conference scheduled for next month, both state and central GST officers will introduce a Standard Operating Procedure (SoP) to effectively address instances of tax evasion and ensure compliance.
A high-ranking official stated, “Despite the government’s cancellation of numerous GST registrations, several fraudulent businesses continue to operate and collect GST from the individual. At the national tax conference set for November, we will unveil the SoP designed to deal with such entities.” He emphasized that it is unlawful to carry on with business and collect taxes from consumers once the GST registration has been revoked.
A nationwide drive is been conducted by the Government from 16th May to 15th July to find out the bogus registrations. Also, central GST officers have arrested seven people in the drive period, as per a finance ministry update to Lok Sabha. Central Board of Indirect Taxes and Customs (CBIC) officer within the part of the same measure has revealed 9369 bogus entities fetching the GST evasion of 10,962 cr till date 9th July.
Additionally, 5,070 cases of bogus GST registration were revealed to misusing PAN/Aadhaar information of others as revealed by the Central GST officers between 1st July 2017 and 30th June 2023. Tax evasion of Rs 27,426 cr was fetched in the same 6-year duration and the recovery stands at Rs 922 cr. 331 people were arrested related to such cases, cited in the government statement.
