BENGALURU: A total of 29,273 bogus firms involved in suspected Input Tax Credit (ITC) evasion of R44,015 crore have been detected, according to the finance ministry. Since May 2023, a special drive against fake registrations has been initiated across the country.
To curb frauds in Goods and Services Tax (GST) and increase compliance, the GST formations, under the Central Board of Indirect Taxes and Customs (CBIC) and the State/UT Governments, across the country are carrying out a focused drive on the issue of non-existent or bogus registrations and issuance of fake invoices without any underlying supply of goods and services.
According to the finance ministry, this initiation has saved R4,646 crore, of which R3,802 crore is by blocking ITC and R844 crore is by way of recovery. So far, 121 arrests have been made in the cases. In the quarter ended December 2023, 4,153 bogus firms that involved suspected ITC evasion of around R12,036 crore were detected. About 2,358 of these bogus firms were detected by the Central GST Authorities. This has protected revenue of R1,317 crore, of which R 319 crore has been realised and R997 crore has been protected by blocking ITC, the ministry said.
About 483 bogus firms were detected in Delhi, 424 in Haryana, 926 in Maharashtra, 507 in Rajasthan, 223 bogus firms in Karnataka were detected during the quarter ended December 2023. Pilot projects of biometric based Aadhaar authentication at the time of registration have been launched in the States of
Gujarat, Puducherry and Andhra Pradesh, the ministry added.