CBIC found 25% of 69,000 suspected GST Registration to be Fake; Expected GST Evasion of Rs.15000 Crore

The Central Board of Indirect Taxes and Customs (CBIC) in its 2 months special anti-evasion drive has found some significant evidence that around 25% of the 69,000 suspected Goods and Services Tax accounts or registration do not exist or have vanished after availing benefits.

These fake and bogus accounts have availed benefits worth of Rs.15000 crore. The special drive discovered 17,000 bogus accounts.

The evasion and bogus accounts were discovered as part of a two-month special investigation to weed out phoney accounts registered with the GST Network.

The role of entities, including some well-known corporate names, is also being investigated. According to the investigation, a top leading food delivery service provider, for instance, is believed to have used fraudulent workforce services from firms.

After scraping the GST database, CBIC officials used artificial intelligence and data analytics to identify around 69,000 possible bogus accounts. Currently, 1.39 crore taxpayers are enrolled under the GST.

The finance ministry reported on July 1 that GST revenue increased by 12 percent in June to more over Rs 1.61 lakh crore. The overall GST revenue surpassed Rs 1.60 lakh crore for the fourth time.

Delhi had the highest success rate or the most number of fakes detected from the list of suspect registrations, a report stated

The GST Council has already made certain decisions on the concerns, which will execute. The aim is to ensure that leakage are prevented.

The issue will almost certainly be brought up at the GST Council meeting on July 11, where the information will be shared with all state finance ministers.