homeeconomy NewsFake input tax credit worth Rs 15,000 crore claimed by 11,000 entities, say finance ministry sources
Fake input tax credit worth Rs 15,000 crore claimed by 11,000 entities, say finance ministry sources
According to finance ministry sources, the Central Board of Indirect Taxes and Customs (CBIC) in its ongoing drive has found that over Rs 15,000 crore were taken as bogus input tax credit (ITC). CBIC had selected a total of 60,000 entities based on various risk metrics and the verification process, which is still underway, is completed for 43,000 entities. The two-month drive will end on July 16th.
More than Rs 15,000 crore was falsely claimed as input tax credit (ITC) under GST regime, the Central Board of Indirect Taxes and Customs (CBIC) has found in its ongoing drive, according to finance ministry sources.
CBIC had selected a total of 60,000 entities based on various risk metrics and the verification process, which is still underway, is completed for 43,000 entities. Based on the process undertaken so far, 11,140 of the entities were found to have claimed bogus GST input tax credits. The two-month drive will end on July 16.
Finance Minister Nirmala Sitharaman on Monday chaired a review meeting of the drive against fake billing for GST evasion. Revenue Secretary Shri Sanjay Malhotra & CBIC Chairman Shri Vivek Johri were part of the meeting.
On being apprised of the methods used to track evaders and action taken against those detected, Sitharaman directed the officials to strengthen the GST registration process using technology to curb entry of such fake entities in GST ecosystem. The FM called for a nation-wide campaign to explain the objectives of the special drive to weed out fake entities.
At the moment there are two ways in which these bogus claims are being made — one is mis-declaring one's identity or in many cases stealing someone else's identity and also by mis-declaring the place of operation of the businesses.
CBIC has also found that these businesses are furnishing bogus rent agreements and misrepresenting Aadhaar cards. The department of indirect taxes is now looking to tighten the validation norms for invoices.
The matter is likely to be taken up by the GST council on July 11 and sources suggest that CBIC is likely to introduce additional validations within the GST return filling system to weed out these bogus claims.
The department of indirect taxes is also using artificial intelligence and machine learning to tackle the issue of fake claims. Sources suggest that GST council is most likely to pronounce on this matter in July.
Also Read: GST Council may review CBIC's plan for additional validations in return filing to curb evasion
First Published: Jun 19, 2023 5:35 PM IST
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