The Goods and Services Tax (GST) department has detected large-scale fake registration (registration). The government fears that about 20 percent of the registrations in the country may be fake at present.
Now the department is working on locating them and canceling them. A new strategy will be formulated in a meeting with the secretaries of the states on Monday on the reduction of GST collection and evasion of GST through fraud.
These fake registrations are detected by the department through a new risk management system. Also, action has been taken against such thieves through gangs detected during the raid of GST Intelligence Wing. Hindustan has come to know through sources that the government has started a hard campaign against such fake businessmen. The GST registration of such fake traders is not only being canceled, but their business is also being closely monitored through the new system.
The Government is apprehensive that now about 20 percent of the registration on the new registration is being done by such fake businesses. The government is keeping a close watch on the accounts of the businessman through the new risk management system. The department is also looking to see if there is a sudden fluctuation in the business of a registered GST businessman. When this happens, a notice is sent to him and action is being taken if he does not get a satisfactory reply. There is going to be an important meeting on GST in Delhi on Monday. In this, curb on GST theft will be an important issue.
Preventing GST piracy first priority
Preventing GST evasion is at the top of the meeting’s agenda. Also, considering the increasing fraud statistics, the suggestion of setting up a new business intelligence unit from the Chief Ministers of the states will also be considered. It is noteworthy that the Central Government has admitted in the Rajya Sabha in the last session of Parliament that in the last two years, GST fraud of more than Rs 44 thousand crores has been done.
Must be linked with Aadhaar
Sources have also told that now a limit is also being imposed on the businessman to make invoices according to the turnover. So that in the name of GST input tax credit, fraud can be curbed. From next year it may be necessary to link GST registration with Aadhaar.
Doing this kind of fraud
In the current era, GST registration is very easy. This does not require any physical verification. Businessmen are given registration in just three hours. By taking advantage of this simple system, fraudulent businesses defraud the government. After registration, traders create fake invoices from the same GST account and claim GST input tax credit.