Special All-India Drive against fake GST registrations

BEWARE GST FAKE REGISTRATION

CBIC issues guidelines for Special All-India Drive against fake registrations

Instruction No. 01/2023-GST dated May 4th, 2023   

The issue of unscrupulous elements misusing the identity of other persons to obtain fake/ bogus registration under GST, with an intention to defraud the Government exchequer, was deliberated during the National Co-ordination Meeting of the State and Central GST officers held at New Delhi on 24th April 2023. The menace of fake registrations and issuance of bogus invoices for passing of fake ITC has become a serious problem, wherein fraudulent people engage in dubious and complex transactions, causing revenue loss to the government.  

Therefore, it was agreed that a nation-wide effort in the form of a Special Drive should be launched on All-India basis to detect such suspicious/ fake registrations and thus, the CBIC has issued guidelines for such concerted action on fake dealers/ fake billers in a mission mode. The Special All-India Drive would be launched by all Central and State Tax administrations during the period 16th May, 2023 to 15th July, 2023.

The CBIC has issued several guidelines for the Special All-India Drive to ensure uniformity and effective coordination:

i) Identification of fraudulent GSTINs: GSTN will identify fraudulent GSTINs using data analytics and risk parameters and will share the details with the concerned State/Central Tax administrations for verification and action.

ii) Information Sharing Mechanism: A nodal officer will be appointed by each of the Zonal CGST Zone and State to ensure seamless flow of data and coordination with GSTN, DGARM and other tax administrations.

iii) Action by field formations: Upon receiving data from GSTN/DGARM, a time-bound verification of suspicious GSTINs will be undertaken by the concerned jurisdictional tax officers. If a taxpayer is found to be non-existent and fictitious, the tax officer will initiate action for suspension and cancellation of the registration.

iv) Feedback and Reporting Mechanism: State and CGST Zones will provide an action taken report to the GST Council Secretariat on a weekly basis. Novel modus operandi detected during the verification process will also be reported.

v) National Coordination Committee: This committee, headed by Member [GST], CBIC and representatives from various tax administrations, will monitor the progress of the special drive. The GST Council Secretariat will compile reports and make them available to the National Coordination Committee.




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