To tighten GST compliance, tax authorities would have planned to bridge the gaps, they would have fetched nearly 15,000 entities and would have fetched the evasion of exceeding Rs 38,000 cr in past years. The same comprises the bogus GST registration cases through misusing PAN and Aadhaar information of other people for ITC claiming along with the identification of the fake entities.
The central GST administration has registered nearly 5700 bogus GST registration cases via the mishandling of the PAN and Aadhaar information of the other individual for ITC claiming between July 1, 2017, and June 30. In such cases, Rs 27,246.16 crore of evasion was detected where Rs 922.58 crore was recovered and 331 arrests were driven.
In addition, 9,369 fictitious corporations related to companies accused of fraud and submitting false ITCs totalling Rs 10,902 crore were found. In these incidents, a total of seven arrests and recovery of Rs 45 crore were achieved.
When asked about instances of fake GST registration in the Lok Sabha on Monday, Minister of State for Finance Pankaj Chaudhary responded with the facts.
Chaudhary stated that “Based on the recommendations of GST Council, sub-rule (4A) has been inserted in rule 8 of CGST Rules, 2017, to provide for risk-based biometric-based Aadhaar authentication of registration applicants and the project is being undertaken on a trial basis in three States and Union Territories.
Further, the Goods and Services Tax Network (GSTN) has made active the functionality of geocoding the address of the principal place of business of the registrants,” on whether the Central Board of Indirect Taxes and Customs intends to introduce biometric verification and geo-tagging of dangerous organizations under GST in the nation.
Between May 16 and July 15, the CBIC conducted a special all-India drive to weed out fraudulent registrations so as to crack down on GST evaders.
The GST Council, in its 50th meeting earlier this month, also took a variety of steps to combat fraudulent organizations and evasion, including a requirement that bank account data be provided within 30 days of registration or before the filing of GSTR-1.
