GST Authorities Expose 29,273 Bogus Firms in Massive Crackdown

Date:

In a significant move against tax evasion, the government revealed on January 7 that GST officers have exposed a staggering 29,273 bogus firms involved in fraudulent Input Tax Credit (ITC) claims. These entities were identified during an extensive effort to combat fake registrations in the eight months leading up to December 2023.

This crackdown on suspected tax evasion, particularly in the October-December quarter, has resulted in the identification of 4,153 suspected bogus firms allegedly engaged in ITC evasion, with a total value of ₹ 12,036 crore. The actions taken against these entities have already protected revenue amounting to Rs 1,317 crore, with ₹ 319 crore recovered and ₹ 997 crore protected by blocking ITC.

Maharashtra led the list of states with 926 identified bogus firms involved in suspected ITC evasion, followed by Rajasthan, Delhi, and Haryana. The December quarter alone saw the detection of 926 bogus firms in Maharashtra, contributing to suspected tax evasion amounting to ₹ 2,201 crore. Similar scenarios unfolded in Delhi, with 483 bogus firms and ₹ 3,028 crore in suspected tax evasion.

Andhra Pradesh, Haryana, and Uttar Pradesh also witnessed significant numbers of identified bogus firms and suspected tax evasion amounts. In response to these findings, 41 individuals have been arrested, with the majority of the arrests made by the Central GST Authorities.

The finance ministry reported that since the initiation of the special drive against fake registrations in mid-May 2023, a total of 29,273 bogus firms involved in suspected ITC evasion of ₹ 44,015 crore have been detected. This not only saved ₹ 4,646 crore but also emphasized the government’s commitment to curbing tax evasion and maintaining the integrity of the Goods and Services Tax (GST) system.

As part of ongoing efforts to combat fraud within the GST system, the Centre has implemented measures to strengthen the registration process. Pilot projects involving biometric-based Aadhar authentication have been launched to enhance security and reduce the risks associated with fraudulent registrations. These initiatives underscore the importance of robust enforcement measures to ensure the integrity of the GST system and protect government revenue.

Subject Matter Expert (Lead Content) at Vakilsearch
Greetings, fellow enthusiasts! With a career rooted in the vibrant world of media, I have journeyed through various literary avenues, from collaborating as a co-author in numerous books to establishing a decade-long presence in the field of criminology. My academic journey boasts an MSc in Psychology and a BSc in Visual Communication and Design, both earned in the bustling city of Mumbai. Currently nestled in the heart of Chennai, my explorations know no bounds.

As an individual with an insatiable curiosity for life, my interests span across diverse domains. When I'm not immersed in my professional pursuits, you'll find me venturing into the great outdoors, embarking on treks that allow me to embrace the natural beauty of our land. Equally captivating is my passion for discovering the nuanced flavors of wine from every corner of India.

Join me on this journey of exploration, where I blend the worlds of media, psychology, and criminology into a mosaic of perspectives. Through my words, I aspire to share my insights, experiences, and the myriad of stories that have colored my path.
Nithya Ramani Iyer
Nithya Ramani Iyer
Nithya Ramani Iyerhttps://news.vakilsearch.com/
Greetings! I am an aspiring criminologist and a devoted psychology student. My journey has encompassed contributions at Seasearch Intelligence before becoming a part of the dynamic team at Vakilsearch. My exploration of the law and investigation field has been a thrilling odyssey. In equal measure, I find myself enthralled by the enigma of crime thrillers and the intricacies of business management. This unique amalgamation of interests propels my unceasing pursuit of knowledge and an ever-deepening comprehension of the world around me. I invite you to accompany me on this intellectual expedition, delving into the intricate connections between human psychology, law enforcement, and the captivating realm of business. Through my words, I aspire to share my fervor, insights, and experiences, with the hope of engaging and inspiring kindred spirits.

Related Articles

Top Categories

News
Related

Sridhar Vembu Resigns: Steps Down as CEO of Zoho Corp & Becomes ‘Chief Scientist

Sridhar Vembu Resigns as the CEO of the software...

DeepSeek: 10 Key Insights About the Chinese AI Company

In a significant move last week, Chinese startup DeepSeek...

Nothing Phone 3a Launch: Expected Price, Specs & Features Revealed

Nothing, the tech brand renowned for its unique transparent...