GST Fraud News: Over 20 Thousand Fake Companies Detected Under The GST Registration Campaign

GST News: The state governments and the CBIC (Central Board of Indirect Taxes and Customs) have jointly introduced a campaign to avoid GST fraud. Under this campaign, the government will take action against those indulged in making fake GST registrations and fake invoices. As part of the campaign against fraudulent registrations, the GST officials have found 29,273 fraudulent companies that have submitted false Input Tax Credit (ITC) claims totaling Rs 44,015 crore over the eight months ending in December 2023, leading to a Rs 4,646 crore savings in revenue.

41 Arrested in Fake GST Cases

The Finance Ministry stated that during the October-December quarter, 4,153 fake companies were found to be involved in alleged ITC evasion of approximately Rs 12,036 crore. Out of these, the Central GST found 2,358 fake companies. In these cases, 41 people were arrested, with 31 of these done by the central GST officials. The government saved Rs. 1,317 crore in revenue during October-December. To further improve the GST registration process, pilot programs for “biometric” based Aadhaar authentication at the time of registration have been launched in the states of Gujarat, Puducherry, and Andhra Pradesh.