The Central Board of Indirect Taxes and Customs ( CBIC ) has issued new guidelines for the second All-India Special Drive aimed at tackling fake GST registrations. The drive, set to commence on August 16, 2024, will last for two months, ending on October 15, 2024.
The initiative follows the success of the first special drive conducted in 2023, which significantly contributed to the identification and elimination of fake GST registrations.
Get a Copy of GST Smart Guide, Click Here
The GST Policy Wing of the CBIC, under the Ministry of Finance, is spearheading this effort in coordination with both Central and State tax authorities.
Key Objectives and Measures
The primary goal of this drive is to detect and remove suspicious and fake GST Identification Numbers (GSTINs) from the system to safeguard government revenue. The drive will focus on high-risk GSTINs identified through data analytics and risk parameters by the GST Network (GSTN) in collaboration with the Directorate General of Analytics and Risk Management (DGARM).
Get a Copy of GST Smart Guide, Click Here
Steps to Be Taken by Tax Authorities
The guidelines outline a systematic approach for tax officers across jurisdictions:
Verification: Field officers will undertake a time-bound verification of suspicious GSTINs. If a taxpayer is found to be non-existent or fictitious, immediate steps will be taken to suspend or cancel the GST registration under Section 29 of the CGST Act.
Credit Blocking: Provisions have been made to block the input tax credit (ITC) in the Electronic Credit Ledger for such entities, and to recover ITC wrongly availed by their recipients.
Coordination: A nodal officer will be appointed in each CGST Zone and State to ensure effective communication between tax jurisdictions using the GSTN Back Office’s ‘Initiate Enquiry’ module.
Get a Copy of GST Smart Guide, Click Here
Reporting and Monitoring
Weekly reports on actions taken will be submitted by the states and CGST zones, allowing for real-time monitoring and coordination by the GST Council Secretariat. The National Coordination Committee, which oversees this drive, will compile and analyse the reports to share with tax administrations nationwide.
The guidelines and reporting formats, as well as the specific roles of the nodal officers, have been detailed in the official instructions issued by the CBIC on August 12, 2024.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
