Crackdown on GST Scams: 18,000 Fake Companies Unmasked

Tax authorities have uncovered 18,000 fake companies involved in a Rs 25,000 crore tax evasion under GST. A national campaign identified 73,000 suspect companies. Voluntary payments of Rs 70 crore were made, and the government is intensifying efforts to prevent fraudulent GST registrations.

In a sweeping crackdown on tax evasion, authorities have uncovered 18,000 companies falsely registered under the Goods and Services Tax (GST) regime, an official revealed.

During a nationwide investigation, GST officers identified approximately 73,000 companies presumed to be fraudulent, primarily created to claim unsupported input tax credits without actual transactions, effectively defrauding the government.

From August to October, a second national operation against these ghost entities confirmed many as invalid. Notably, this move follows a similar drive earlier in the year where thousands more companies were flagged, with tax evasion figures reaching Rs 24,010 crore.

(With inputs from agencies.)