Massive GST Fraud Unearthed: Rs 10,179 Crore in Fake Registrations Detected

Tax officials have uncovered 10,700 fake GST registrations, evading Rs 10,179 crore in a nationwide crackdown. The Central Board of Indirect Taxes and Customs (CBIC) emphasizes more Aadhaar verifications and potential taxpayer restrictions. Officials stress data mismatch corrections and technological solutions to mitigate disputes due to fake invoices.

Tax officials have detected an alarming 10,700 fake registrations under the GST, leading to evasion of Rs 10,179 crore as part of a nationwide crackdown on fraudulent companies, disclosed a senior official on Tuesday.

Shashank Priya, a member of the Central Board of Indirect Taxes and Customs (CBIC), revealed that Aadhaar authentication of GST registrations is currently active in 12 states, with an additional four states joining by October 4. In total, 20 states, including Madhya Pradesh, Rajasthan, Assam, Tamil Nadu, Uttar Pradesh, and Haryana, will implement Aadhaar authentication eventually.

The second all-India drive against fake registrations commenced on August 16 and will run until October 15. The latest efforts have identified 67,970 GSTINs, with around 27 percent found non-existent. Targeted actions and physical verifications are intensifying to curb these fraudulent activities effectively.

(With inputs from agencies.)