GST: Govt Eliminated 7K Fraud Companies Using Data Analytics Tools

Seeking protective data analytics through the firms, the government has initiated a restriction to the GST evasions where 7000 entities were actioned upon and arrested 187, it is a campaign to float the tax collection said Ajay Bhushan Pandey Finance Secretary.

In December 2020 the net GST collection was Rs 1.15 lakh cr which was received when the action was taken against tax evaders and emerged in the economy. five chartered accountants and one company secretary have been caught against fake invoicing rackets in the last one and 1/2 months and arrested 187.

“Many of them including some managing directors are in jail for the last 40-50 days. There are few large companies which too are found involved in taking fake bills through multiple layers, thereby evading GST and income tax. So they have also been booked,”

The council will take the action on the grounds of collecting the details through several agencies like the income tax council Customs unit, FIU and GST department, and banks.

“We have taken action against 7,000 evaders out of a tax base of 1.20 crore. Hence our success rate is very very high,”

Below the GST bogus invoices INR 1 trillion GST has been collected for the very first time in the eight months in October post unlocking from September. Any month GST collection resembles the business received in the previous month, the income tax dept will quickly examine all the cases booked due to higher implications.

“Because of the data available, it is very very difficult to escape because sooner or later they will get caught,”

E-Invoice is important for all business transactions whose value exceeds Rs 5 crore. The electronic invoice will be compulsory for Business to business transactions A helpful GST guide for consumers, B2B (Business to Business) and B2C (Business to Consumer) by SAG Infotech. We also included some important GST articles. read more for those who have a turnover exceeding Rs 500 crore from October 1, 2020, and for over Rs 100 crore turnover from January 1.

“We have found many shell companies which are issuing invoices worth crores of rupees and not paying income tax and paying the entire liability through ITC. So in order to ensure that these companies are not able to abuse the system, this particular anti-abuse provision has been put in and this will impact less than 45,000 units in the entire tax base of 1.2 crores,”

“Also the measures like e-invoice, pre-population of information on supplier wise input tax credit, which deter those who are trying to claim excess ITC, are helping compliance. By targeted action against tax evaders by way of full data analytics, it is possible to pinpoint the entity which issued the fake bill and also the ultimate beneficiary,”