NEW DELHI: Finance minister Nirmala Sitharaman on Tuesday stated GST officers have detected 21,791 fake GST registrations and over Rs 24,000 crore of suspected tax evasion throughout a two-month-long special drive. In a written reply to a query in Rajya Sabha, the minister stated to safeguard the curiosity of sincere taxpayers and keep away from excessive hardship to taxpayers, directions have been issued on occasion, directing officers to train due warning and care in the train of powers comparable to summons, provisional attachment of property, blocking of tax credit score and so forth.
“A total of 21,791 entities (11,392 entities pertaining to state tax jurisdiction and 10,399 entities pertaining to CBIC jurisdiction) having GST registration were discovered to be non-existent. An amount of Rs 24,010 crore (state – Rs 8,805 crore + Centre – Rs 15,205 crore) of suspected tax evasion was detected during the special drive,” Sitharaman stated.
The minister was replying to a query on the quantity of entities recognized as having fake registrations, and the entire quantity of evasion detected in the course of the special drive in opposition to fake GST registrations performed by the Central Board of Indirect Taxes and Customs (CBIC) from May 16 to July 15, 2023.
To a question on whether or not the federal government has thought of the challenges confronted by e-commerce enterprises in acquiring GST registrations, particularly working in digital areas, Sitharaman stated that contemplating the special nature of e-commerce operators, a simplified process for registration of e-commerce operators has already been notified.
It gives that when an e-commerce operator applies for registration in a selected state or Union Territory the place he/she doesn’t have a bodily presence, he/she will apply for registration by giving particulars of the principal place of enterprise positioned in one other state or Union Territory.
Further, amendments have been made in GST Rules to strengthen the registration course of, together with biometric-based Aadhaar authentication, for high-risk registrants, together with the verification of the unique copy of the paperwork.
A pilot undertaking for this was launched in Gujarat. In July, the pilot undertaking was prolonged to Puducherry and in November to Andhra Pradesh.
Also, particulars of checking account, title and PAN of the registered particular person are required to be furnished inside 30 days of the grant of registration or earlier than submitting of the assertion of outward provide, whichever is earlier.
Entities who don’t furnish the main points of legitimate financial institution accounts inside the time interval prescribed might be suspended mechanically by the system. However, upon compliance with this provision subsequently, by the registered individuals such system-based suspension could be mechanically revoked by the system.
“A total of 21,791 entities (11,392 entities pertaining to state tax jurisdiction and 10,399 entities pertaining to CBIC jurisdiction) having GST registration were discovered to be non-existent. An amount of Rs 24,010 crore (state – Rs 8,805 crore + Centre – Rs 15,205 crore) of suspected tax evasion was detected during the special drive,” Sitharaman stated.
The minister was replying to a query on the quantity of entities recognized as having fake registrations, and the entire quantity of evasion detected in the course of the special drive in opposition to fake GST registrations performed by the Central Board of Indirect Taxes and Customs (CBIC) from May 16 to July 15, 2023.
To a question on whether or not the federal government has thought of the challenges confronted by e-commerce enterprises in acquiring GST registrations, particularly working in digital areas, Sitharaman stated that contemplating the special nature of e-commerce operators, a simplified process for registration of e-commerce operators has already been notified.
It gives that when an e-commerce operator applies for registration in a selected state or Union Territory the place he/she doesn’t have a bodily presence, he/she will apply for registration by giving particulars of the principal place of enterprise positioned in one other state or Union Territory.
Further, amendments have been made in GST Rules to strengthen the registration course of, together with biometric-based Aadhaar authentication, for high-risk registrants, together with the verification of the unique copy of the paperwork.
A pilot undertaking for this was launched in Gujarat. In July, the pilot undertaking was prolonged to Puducherry and in November to Andhra Pradesh.
Also, particulars of checking account, title and PAN of the registered particular person are required to be furnished inside 30 days of the grant of registration or earlier than submitting of the assertion of outward provide, whichever is earlier.
Entities who don’t furnish the main points of legitimate financial institution accounts inside the time interval prescribed might be suspended mechanically by the system. However, upon compliance with this provision subsequently, by the registered individuals such system-based suspension could be mechanically revoked by the system.
