The Directorate General of GST Intelligence (DGGI) has detected 8000 fake GST Input Tax Credit (ITC) claim cases with the help of GSTR 3B and GSTR 2A. The DGGI official has informed that the notices will be sent to the concerned entities. The department already issued notices to 5000 companies.
As per the government official’s report to ET stated, “Data analytics have helped us detect a large number of cases of mismatch between form GSTR 3B and GSTR 2A and we have sent notices to about 5,000 businesses”.
Form GSTR-3B is a simplified summary return and the purpose of the return is for taxpayers to declare their summary GST liabilities for a particular tax period and discharge these liabilities. A normal taxpayer is required to file Form GSTR-3B returns for every tax period.
GSTR 2A is an automatic return generated for a taxpayer from his seller’s GSTR-1. 1. Any/all invoices uploaded by suppliers in their Form GSTR-1/ GSTR-5 will be visible in Form GSTR-2A.
Further, out of the notices sent, about 1,500 companies have tax demand notices over ₹100 crore, including penalty and interest.
Nonetheless, according to the aforementioned notices, officials stated that the suppliers in question failed to file appropriate returns and were associated with companies known for issuing counterfeit invoices without actually providing any goods or services.
Recently, DGGI Meerut Zonal Unit has uncovered two significant fake billing schemes involving 246 shell/fake entities. These entities were involved in fraudulent activities, passing on a total of Rs. 557 crore worth of fake ITC.
Read More: DGGI busts racket involving 246 Shell Companies involving ITC Claim of Rs. 557 crore : Arrests 3
Also, the Visakhapatnam DGGI has arrested the mastermind in charge of the generation of false invoices worth Rs. 108.9 crores and the subsequent fraudulent claim of Rs. 19.60 crores in ITC.
Read More: DGGI Arrests Mastermind Generating Bogus Invoices Worth ₹108.9cr and Fake ITC Claim of ₹19.60cr
The DGGI officials are actively engaged in ongoing efforts to identify and investigate fraudulent Input Tax Credit (ITC) claims made by various entities. As a result of these endeavours, the government is experiencing significant revenue losses.
In the previous fiscal year 2020-21, the DGGI registered approximately 8,000 cases related to counterfeit input tax credit (ITC) amounting to over ₹35,000 crore.
The Revenue Secretary in the 51st GST Council Meeting held on August 2nd 2023 has mentioned that the central government is going to set up a DGGI offices cell to monitor the websites and portals running without paying tax.
Also, in the 50th GST Council meeting, he claimed that 70,000 suspected firms have been identified and able to verify about 60,000 of them. And 17,000 were found to be bogus in which the action has been taken. And roughly about 17,000 crores of GST have been evaded by these firms.
Read More: Suspects GST Evasion of Rs. 17,000 crores through fake firms: Revenue Secretary in GST Council
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