The upcoming meeting for Nation-level Coordination of Goods and Services Tax administration, led by Revenue Secretary Sanjay Malhotra, will convene Central and state GST officers to delve into critical matters such as strengthening registration norms to counter fictitious entities formed to evade taxes.
This gathering follows closely on the heels of April’s remarkable GST collections, totaling a record high of Rs 2.10 lakh crore. The surge is attributed to robust economic activity, heightened domestic transactions, and intensified audit and scrutiny measures.
During the third National Coordination Meeting, senior officials from Central and State Tax administrations will explore avenues for enhancing GST registration protocols to thwart fraudulent entities exploiting input tax credit ( ITC ) provisions. Additionally, discussions will revolve around strategies to track down the masterminds behind GST fraud by tracing financial trails.
Tax authorities are leveraging data analytics and artificial intelligence tools to pinpoint high-risk taxpayers suspected of engaging in fraudulent ITC transactions. Rigorous verification procedures, including physical site inspections and Aadhar authentication, are integral components of GST registration processes, effectively detecting and curbing fraudulent registrations.
Pilot initiatives are underway in Gujarat, Andhra Pradesh, and Puducherry, implementing risk-based biometric Aadhaar authentication for registration applications.
Government data reveals that central tax officers uncovered approximately 14,600 instances of GST evasion between April and December 2023, with Maharashtra, Gujarat, Haryana, and West Bengal topping the list of states with the highest number of fraud cases.
Moreover, GST intelligence operations have identified fake ITC cases amounting to Rs 18,000 crore during April-December 2023, resulting in the apprehension of 98 fraudsters and masterminds.
Previous coordination meetings in April 2023 and December 2023 addressed issues surrounding fake GST registrations, leading to a nationwide drive to weed out bogus GSTINs and sharing best practices among states to combat tax evasion effectively.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
