Bogus Billing: Punjab GST Division Cancelling more GST Numbers than Giving Registration

Mandi Gobindgarh one of the GST divisions in Punjab, notorious for fake billing, may be the only division with more GSTN cancellations and surrenders than registrations.

These numbers were obtained through a TOI RTI (Right to Information) study from 2017 (when the goods and services tax was implemented) through November 2021.

The Division has 5,451 cancellations and surrenders and 5,296 GST registrations from 2017 (when the Goods and Services Tax was implemented) through November 2021.

In the event of tax evasion or default, the GST number is usually revoked. If the dealers choose to stop doing business, they can also relinquish this number. There is no other division with a comparable or fewer number of cancellations.

During the inquiry period, Patiala-1 had 5,432 GST registrations and just 1,420 cancellations and surrenders. Even for larger divisions, the statistics are lower than in Mandi Gobindgarh. Only 1,771 cancellations were reported in Amritsar-1, which has 7,071 registered dealers, compared to 4,621 cancellations in Ludhiana South, which has 14,086.

Rajkumar Singla, president of the Fastener Suppliers Association of Ludhiana, commented on the situation: “It is unsurprising. The total cancellations in Mandi Gobindgarh may be the biggest in India, and they are certainly the highest in Punjab. It shows that there is a large amount of fraudulent billing and tax evasion and that the tax authorities have begun to catch the evaders. There is more that has to be done to put a stop to these financial crimes and protect honest and genuine business people.”

Source: Time of India