Saturday, May 6, 2023

Guidelines for Special All-India Drive against fake registrations

In past few years Goods and Service Tax Department has identified and curbed various cases of Fake Firms, Bogus Invoicing, Firms in name of persons from economically weaker sections etc usually made to evade taxes and causing revenue loss to the Government. 


GST Officials has been taking help from various data analytics sources such as like BIFA, ADVAIT, NIC Prime, E-Way analytics, etc, as well as through human intelligence, Aadhar database, other local learning and the experience gained through the past detection and modus operandi alerts to detect these organizations and cases. But even after many detected cases there are still various organizations which are involved in such activities which is causing loss to Government in form of GST wrong input passing.

The Central Board Indirect Taxes & Customs, GST Policy Wing through its Instruction No. 01/2023-GST have proposed special drive for identifying these fake registrations from 16th May 2023 to 15th July 2023 to detect suspicious / fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue.


The government proposes following action through this drive:

1. Suspension/Cancellation of Registration of Such Fake firms registered with GSTN.

2. Blocking of credit of such fake firms.

3. Demand and recovery of Input tax credit from recipient of such fake firms through details extracted from GSTR-1

4. Provisional attachment of property/Bank Account of Mastermind of Such Fake firms.

Link to detailed instruction regarding the Special drive is given below:

Guidlines for Special All-India Drive against Fake registrations


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