73,000 GSTINs were identified for verification
The tax authorities have achieved a major success. Officials have detected around 18,000 fake companies registered under the Goods and Services Tax (GST). Officials say that these companies are involved in tax evasion of about Rs 25,000 crore. In the recently concluded second nationwide drive against fake companies, tax officials had identified a total of 73,000 companies whom they suspected were merely availing ‘input tax credit’ (ITC) without selling any genuine goods. These companies were established to raise money and thus these companies were continuously defrauding the government exchequer.
73,000 GSTINs were identified for verification
Tax officials said on this whole matter, “In the second nationwide campaign against fake registration under GST, we had identified about 73,000 GSTINs for verification. Of these, about 18,000 such companies were found which do not exist. These shell companies were involved in tax evasion of approximately Rs 24,550 crore. Voluntary GST payment of approximately Rs 70 crore was made by the companies during a special drive conducted by the department.
21,791 fake companies came to light in the campaign conducted from May 16 to July 15.
Let us tell you that the government is taking targeted action to check fake GST registrations and more and more physical verification is being done. The second nationwide campaign against fake registration was conducted from August 16 to the end of October. Under the first nationwide campaign against fake registration, which ran from May 16 to July 15 last year, 21,791 companies with GST registrations were found to have no existence. Suspected tax evasion of Rs 24,010 crore was detected during the operation.
With PTI inputs
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