During the initial week of a special drive to detect fake GST Registrations, officials from both central and state goods and services tax departments uncovered approximately 10,000 fraudulent GST registrations.
This is a clear indication that you need to get GST Registration through the proper legal process. Otherwise, there can be serious consequences damaging you and your business.
GST Authorities Crack Down on Counterfeit Invoices and Registrations
As per individuals familiar with the matter, authorities are conducting physical verification of addresses by visiting them personally before initiating any actions.
The endeavor to tackle counterfeit invoices and registrations commenced on May 15 and is scheduled to persist until July 15.
“A senior official stated that approximately 10,000 fraudulent GST registrations have been identified within the initial week of the operation.
In numerous instances, officials found fabricated power bills, property tax receipts, and rent agreements being utilized as evidence of a primary place of business to obtain GST registration.
The extent of the fictitious input tax credit is yet to be determined, with a spokesperson mentioning that it is too early to estimate the figures.
The final statistics will be available once the campaign is concluded.”
GST Network Conducts Physical Verification of GSTINs
GST Network, the entity responsible for identifying potentially fraudulent GSTINs for state and national tax authorities, selected the cases for physical verification using data analytics and assessing risk factors.
Earlier GSTIN also detected a huge scam in India. You can read about it here:
https://www.e-startupindia.com/learn/govt-detected-importers-evading-gst-of-%e2%82%b911000-crores/
If you want any other guidance relating to the Fraudulent GST Registrations please feel free to talk to our business advisors at 8881-069-069.
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