Haryana Govt. Cancelled Registration of Firms Generating Fake Input Tax Credit

The Excise and Taxation Department, Government of Haryana identified a list of 213 suspicious taxpayers in the State who were claiming Input Tax Credit (ITC) in their FORM GSTR-3B but had no input tax credit reflected in their FORM GSTR-2A / FORM GSTR-2B.

It was believed that a small number of these taxpayers were essentially false invoice generators who would claim suo moto input tax credits before transferring fraudulent or non-existent input tax credits to other businesses both inside and outside the State.

As a result, between August 8 and August 16, 2022, a Special Drive was launched against these taxpayers to physically verify and cancel the registration of fraudulent or fictitious taxpayers in accordance with the requirements of the Haryana GST Act, 2017 and rules made thereunder.

Out of 213 taxpayers, 205 had undergone physical verification, and 114 of those were discovered to be false or nonexistent at their primary place of business.

The department has suspended registration of 103 of these taxpayers. As a preventive measure ITC worth 14.84 Cr of these fake taxpayers has been blocked and a total recovery of 16.70 lakhs has been made from these suspicious taxpayers. Further, physical verification and cancellation of registrations of remaining fake taxpayers is under process.

The Government of Haryana has zero tolerance for phony/nonexistent businesses, and appropriate legal action would be taken under the Act against those who promote such bogus businesses and those who receive input tax credit from such fraudulent businesses.

For Official Notification Download PDF Given Below: