GST Evasion by Bogus Firms: Delhi Tops the List in the Third Quarter | India News

Feb 8, 2024

New Delhi: Delhi has the dubious distinction of evading the highest amount of Goods and Services Tax (GST). fake firms In third quarter of 2023-24 financial year,
According to officials, between October and December 2023, 483 fake firms were busted in the capital, which were involved in suspicious business. GST evasion Of Rs 3,028 crore. Delhi stood third after Maharashtra (926) and Rajasthan (507) in the number of fake GST firms caught by the authorities in Q3FY24.
However, he said the suspected amount of GST evasion in Maharashtra and Rajasthan was estimated at Rs 2,201 crore and Rs 197 crore, respectively.
The Central Board of Indirect Taxes and Customs and respective State and Union Territory Governments are running a drive from May 2023 to identify fraudulent registrations without any underlying supply of goods and services and issuance of fake invoices under GST formation. .
In the quarter ending December 2023, a total of 4,153 fake firms involved in suspected input tax credit evasion of about Rs 12,036 crore were detected across the country and 41 arrests were made. In Delhi, officials managed to seize input tax credit worth Rs 90 crore and arrested 11 people involved in the fraud.
In terms of estimated GST evasion, Delhi is followed by Maharashtra, Uttar Pradesh (Rs 1,645 crore), Andhra Pradesh (Rs 765 crore) and Haryana (Rs 624 crore).
Since the launch of the special operation, a total of 29,273 fake firms involved in suspected ITC evasion of Rs 44,015 crore have been detected across the country.
While there was no response available from Finance Minister Atishi's office, trade and tax department officials claimed that measures were being taken to prevent entry of fake firms in the GST network.
“We have set up a centralized GST registration cell to receive and process new applications. This has helped in reducing the number of deemed registrations of firms and thus curbing the entry of fake trading firms, leading to GST The theft and subsequent revenue loss to the government has been curbed,” said an official requesting anonymity.
Of the 1.46 lakh applications received from new companies for registration with the trade and tax department in 2022-23, around 50,000 got “deemed approval”, which in simple words means they can get GST registration without manual scrutiny of documents. Succeeded in. , as the officials could not complete the verification process within the stipulated seven days.

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