GST Evasion of 30,000 Crore: GST Authorities Busted Tax Evasion across 16 States

A recent large-scale operation by Goods and Services Tax (GST) officials found tax evasion totaling 30,000 crore. The use of stolen identities, including about 18,000 Permanent Account Numbers (PAN) and Aadhaar cards, is claimed to have aided the fraud. It has been claimed that recipients of several government initiatives, including PM Kisan and social security programmes, had their identities stolen in order to set up 4,000 bogus firms and 16,000 fake GST registrations.

Beginning on May 16, the Goods and Services Tax authorities launched a thorough two-month anti-tax evasion operation. Approximately 10,000 bogus registrations were discovered in the first week.

The GST authorities worked with other agencies such as the Income Tax Department, the Enforcement Directorate, and the Ministry of Corporate Affairs to combat the organised nature of the evasion. These agencies also launched separate investigations against the persons and businesses engaged in the evasion, with activities in 16 states.

Multiple sites have been searched by tax officials, resulting in the arrest of seven people in this case. This investigation, according to a senior officer, found a huge and well-coordinated network operating spanning 16 states.

The shell firms were used to create counterfeit invoices, which were then sold to various businesses in order for them to claim the input tax credit. Three independent teams coordinated in a multi-state effort to construct shell firms using stolen identities, generate false e-way bills and invoices, and distribute these invoices to companies in need.

Furthermore, certain individuals had been nominated as directors of these firms without their knowledge, which they discovered when they got tax notices at their homes. The enterprises who used these counterfeit invoices to illegally claim the input tax credit will get notifications from authorities soon.

Initially, state GST officials in Gujarat detected a scheme involving counterfeit invoices and stolen identities in Bhavnagar and Surat. This spurred the launch of a national campaign. Following it, similar operations were carried out other states like as Uttar Pradesh, Madhya Pradesh, Rajasthan, Delhi, Maharashtra, Kerala, Punjab, and Haryana.