GST Scam: 25% of 69000 Suspected Accounts Fake, Rs 15000 Crore Evasion Potential Uncovered

The Central Board of Indirect Taxes and Customs (CBIC) has found that around 25% of 69,000 suspected GST accounts are fake. These accounts have availed benefits of around Rs 15,000 crore.

The authorities used artificial intelligence and data analytics to identify around 69,000 suspected accounts after scrubbing the GST database. The drive, which ends July 15, found 17,000 of them to be bogus. The authorities are also investigating the role of entities, including some big names in business, in the fake GST accounts scam.

The food delivery service provider that you mentioned is one of the entities that is being investigated. The authorities believe that the company may have availed of manpower services from companies that were found to be bogus. This would have allowed the company to claim bogus input tax credit (ITC) and evade paying GST.

The authorities are also investigating other entities, including some large manufacturing companies. They are looking into how these companies may have used fake GST accounts to evade paying GST.

The GST Council has already taken some decisions to prevent the creation of fake GST accounts. These decisions include strengthening the GST registration process and conducting regular audits of GST taxpayers. The authorities are also working on a new system that will allow them to track the movement of goods and services more effectively.

The issue of fake GST accounts is likely to come up at the GST Council meeting on July 11. The authorities are expected to share more information about the scam and the steps that they are taking to address it.

The authorities have said that they are not planning to tighten the registration norms for GST taxpayers. They believe that the current norms are sufficient to prevent the creation of fake GST accounts. However, they are committed to making the registration process more transparent and efficient.

The authorities are also working to improve the data analytics system that they use to identify fake GST accounts. They believe that this will allow them to identify and investigate these accounts more effectively.

The discovery of fake GST accounts is a serious issue. However, the authorities are taking steps to address it. They are confident that they will be able to prevent the creation of fake GST accounts and recover the evaded GST.