Tax officers have detected around 10,700 fake registrations under the GST, involving evasion of Rs 10,179 crore in the ongoing all-India drive against fake companies set up to defraud the exchequer, a senior official said on Tuesday. Central Board of Indirect Taxes and Customs (CBIC) member Shashank Priya said Aadhaar authentication of GST registration is already in place in 12 states and by October 4, another four states would join. Eventually, 20 states, including Madhya Pradesh, Rajasthan, Assam, Tamil Nadu, Uttar Pradesh and Haryana, will start Aadhaar authentication. Speaking at an Assocham event, Shashank Priya also said that in future, the tax authorities may also put certain restrictions on new taxpayers based on their risk profile. "How many invoices they can issue in a month, we may also put some restriction on that in the future... We feel very pained at the misuse of the system. We have to use all methods that are at our command to ensure that those are stopped," he said. The CBIC official also said that the government is taking targeted action to check fake GST registration and more physical verification is taking place. The second all-India drive against fake registration began on August 16 and will continue till October 15. He said the tax authorities have identified 67,970 GSTINs. Of this, 59% of the GSTINs or 39,965 have been verified as of September 22. Shashank Priya said, "27% have been found to be non-existent. This percentage is almost similar compared to the last drive. We have detected evasion of Rs 10,179 crore. Blocked ITC of Rs 2,994 crore. Also, recovery of Rs 28 crore has been done (in the 2nd drive till September 22)." In the first drive against fake registration between May 16, 2023 and July 15, 2023, a total of 21,791 entities having GST registration were discovered to be non-existent.

GST officers detect 10,700 bogus firms, over ₹10K cr evasion

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