The Central Board of Indirect Taxes and Customs (CBIC) has taken a proactive stance in its pursuit to eradicate deceptive accounts within the Goods and Services Tax Network (GSTN). The outcomes of this concerted endeavor have unveiled a startling truth – nearly a quarter, roughly 25%, of the identified entities, who have wrongly taken advantage of benefits amounting to approximately ₹15,000 crores, either lack existence or have mysteriously disappeared, as reported by The Times of India (TOI).
These revelations concerning the suspects’ identification stem from assiduous scrutiny of a vast database that enlists an astonishing 1.4 crore GST contributors.
Employing advanced artificial intelligence and data analysis techniques, the authorities meticulously combed through a list of around 69,000 suspects. Over the course of an ongoing two-month operation, the investigation has effectively brought to light 17,000 counterfeit accounts that have exploited fabricated input tax credits, as stated by the publication.
It’s noteworthy that the inquiry extends across the spectrum of entities involved in the supply chain, including prominent players in the business landscape. For instance, it has come to attention that a prominent food delivery service provider has utilized services from non-existent entities. It’s pertinent to mention that previous similar initiatives have also exposed analogous instances of misconduct.
Insiders from the government, sharing information with TOI, have revealed that Delhi stands out with a commendable success rate, particularly in uncovering a significant number of falsified registrations.
Expanding on the recent crackdown, CBIC is now devising strategies for regular evaluations aimed at preventing the misuse of benefits. Furthermore, the agency intends to reinforce regulatory measures by rolling back certain flexibilities that were introduced to ease tax payment obligations for suppliers amidst the pandemic.
Senior officials have confirmed to TOI that decisions pertaining to these matters have already been endorsed by the GST Council, with implementation underway. The overarching goal remains to curtail leakages and bolster the system’s integrity.
This subject is anticipated to be thoroughly discussed in the upcoming GST Council meeting, during which comprehensive details will be shared with state finance ministers. Nevertheless, officials have categorically dismissed the notion of imposing stricter registration criteria, asserting that the primary emphasis is on streamlining the process for honest taxpayers, rather than burdening them with unwarranted compliance.