Since May 16, almost 4,900 fake GST registrations have been canceled

In the continuing pan-Indian campaign against bogus registration, the GST authorities have discovered around 17,000 non-existent GSTINs and deleted more than 4,900 registrations, a senior tax official said on Wednesday.

There are now 1.40 crore enterprises registered under the Goods and Services Tax, which is almost twice as many as there were under the indirect tax system before to the implementation of the GST.

Shashank Priya, a member of the Central Board of Indirect Taxes and Customs (CBIC), said that up till July 4, more than 69,600 GST Identification Numbers (GSTINs) have been chosen for physical verification by field tax officials as part of the campaign against false registration.

 

Of these, more over 59,000 GSTINs have been confirmed, and 16,989 of them have been discovered to be fake.

 

Over 11,000 GSTINs have been stopped, and 4,972 registrations have been canceled, out of the 69,600 total.

 

Priya said at the Assocham’s National Conclave on GST that this involves tax evasion of over Rs 15,000 crore, blockage of input tax credit (ITC) of Rs 1,506 crore, and collected taxes of Rs 87 crore.

 

The two-month special campaign to prevent false GST registrations started on May 16 and will expire on July 15.

 

False registration is a problem under GST because thieves falsely claim ITC by creating phony invoices and steal money from the exchequer.

 

Priya said that the tax administration is considering adding more detailed reporting of data from GSTR-3B to monthly tax filings. Better matching between GSTR-3B and GSTR-2B, an automatically generated ITC statement, would result from this.