Govt flags 67,970 suspicious GST registrations, detects ₹10,179 cr tax evasion in ongoing crackdown

The government is ramping up its crackdown on fake GST registrations with the launch of a second nationwide drive to identify fraudulent entities and recover lost revenue. CBIC Member Shashank Priya announced that this two-month operation, which began on 16 August, has already flagged 67,970 suspicious GST registrations across India.

Building on insights from last year’s similar drive, authorities have refined their risk parameters to better target potential fraud. So far, 59% of the identified GSTINs have been verified, with 27% found to be non-existent. While the percentage of non-existent entities was expected to be higher, Shashank Priya noted that the results are currently in line with the previous campaign.

This second phase follows a major operation from 16 May to 15 July 2023, during which 21,791 entities with fraudulent GST registrations were uncovered. The drive led to the detection of ₹24,010 crore in suspected tax evasion, split between ₹8,805 crore in state taxes and ₹15,205 crore under CBIC’s purview.

Also read: Real estate GoM meets on Sept 24 in Goa to discuss GST levy on properties

In the current drive, tax authorities have already detected ₹10,179 crore in tax evasion, blocked ₹2,994 crore in input tax credit (ITC), and recovered ₹28 crore.

Under the special drive, the GST Network, in collaboration with the Directorate General of Analytics and Risk Management (DGARM) and CBIC, is leveraging advanced data analytics and risk parameters to identify suspicious or high-risk GSTINs. This information is then shared with jurisdictional tax officers for further verification. The intensified effort is aimed at ensuring transparency, plugging revenue leaks, and recovering lost tax.