Special Drive To Weed Out Fake GST Registration Begins On Aug 16: CBIC

The second Special All-India Drive may be launched by all Central and State Tax administrations from August 16 to October 15, 2024, to detect suspicious or fake GSTINs. Central and State GST officers will launch a pan-India special two-month drive against fake registration beginning August 16, the CBIC said on Monday. This is the second such drive to identify fake registrations under the Goods and Services Tax (GST). Fake GST registrations are usually taken to fraudulently avail and pass on input tax credit and evade GST.

Latest action against fake GST registration:

“The second Special All-India Drive may be launched by all Central and State Tax administrations from August 16 to October 15, 2024, to detect suspicious or fake GSTINs, conduct requisite verification, and take further remedial action to weed out these fake billers from the GST eco-system and safeguard government revenue,” the Central Board of Indirect Taxes and Customs (CBIC) said in an instruction to field formations.

First drive against fake GST registration:

In the first drive between May 16, 2023, and July 15, 2023, against fake registration, a total of 21,791 entities (11,392 entities pertaining to State tax jurisdiction and 10,399 entities pertaining to CBIC jurisdiction) having GST registration were discovered to be non-existent.

Total tax evasion detected during drive:

An amount of Rs 24,010 crores (State: Rs 8,805 crores + Centre: Rs 15,205 crores) of suspected tax evasion was detected during the special drive. This extended drive highlights the critical role of data analytics and inter-agency collaboration in combating tax evasion and underscores the Government’s commitment to maintaining a clean and fair tax environment.