GST Authorities have detected 29,273 shell companies involved in fraudulent input tax credit (ITC) claims of Rs 44,015 crore in the eight months till December 2023 during a drive against fake registrations. This helped in saving revenue of Rs 4,646 crore. The government gave this information on Sunday. According to the Finance Ministry, 4,153 shell companies were detected in the October-December quarter, which were involved in suspected ITC evasion of around Rs 12,036 crore. Central GST officials detected 2,358 of these fake companies.
Maximum 926 companies are in Maharashtra
Of these, maximum 926 companies were detected in Maharashtra, followed by 507 in Rajasthan, 483 in Delhi and 424 such companies in Haryana. According to the ministry, 41 people were arrested in these cases. Of these, 31 arrests were made by Central GST officials. The campaign during the October-December quarter helped save revenue of Rs 1,317 crore, of which Rs 319 crore was recovered and Rs 997 crore was secured by blocking ITC. The ministry said the government has taken several measures to strengthen the GST registration process. Pilot projects of ‘biometric’ based Aadhaar authentication at the time of registration have been launched in the states of Gujarat, Puducherry and Andhra Pradesh.
Notice to CEAT regarding GST demand
Recently, tire maker CEAT Ltd. has received a notice from the tax authorities in Vadodara, Maharashtra and Gujarat demanding GST and penalty of Rs 19 crore. CEAT Ltd said in a filing to the stock exchange that the Additional Commissioner (Central GST and Central Excise), Vadodara, has issued the order with interest of Rs 3.27 crore and penalty of Rs 13.68 crore. Earlier, a show cause notice was served to the company. The reason for this was the delay in showing the input tax credit in the ‘Credit Ledger’. In another case, Maharashtra’s Deputy Tax Commissioner has issued an order demanding Rs 22 lakh and Rs 26 lakh as interest. Also demanded a fine of Rs 2 lakh. This case relates to change in the status of input tax credit due to non-payment of tax by the supplier.
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