Officials found 16,000 fraudulent GST registrations.
Initially, the Gujarat state GST officials discovered a scam involving counterfeit invoices that utilised stolen identities in Bhavnagar and Surat.
A recent extensive operation by the Goods and Services Tax (GST) authorities has revealed tax evasion amounting to ₹30,000 crore. The evasion is said to have been facilitated through the use of stolen identities, including approximately 18,000 Permanent Account Numbers (PAN) and Aadhaar cards. It has been alleged that the beneficiaries of various government schemes such as PM Kisan and social security programmes, had their identities misused to establish 4,000 fictitious companies and 16,000 fraudulent GST registrations.
The Goods and Services Tax authorities initiated a comprehensive two-month operation against tax evasion, commencing on May 16. In the initial week, approximately 10,000 fraudulent registrations were identified.
To tackle the organised nature of the evasion, the GST authorities collaborated with other agencies such as the Income Tax Department, Enforcement Directorate and the Ministry of Corporate Affairs. These agencies also initiated independent actions against the individuals and companies involved in this evasion, with operations in 16 states.
Multiple locations have been subject to searches by tax authorities, leading to the arrest of seven persons in this matter. According to a senior official, this operation uncovered a significant and well-coordinated network operating across 16 states.
The shell companies were utilised to produce counterfeit invoices, which were subsequently sold to different businesses to claim the input tax credit. In a multi-state endeavour, three distinct teams collaborated to establish shell companies using stolen identities, fabricate fraudulent e-way bills and invoices, and distribute these invoices to companies in need.
Besides, certain individuals had been appointed as directors of these companies without their knowledge, and this came to their attention when they received tax notifications at their residences. Authorities will soon issue notices to the companies that utilised these counterfeit invoices to fraudulently claim the input tax credit.
Initially, the Gujarat state GST officials discovered a scam involving counterfeit invoices that utilised stolen identities in Bhavnagar and Surat. This prompted the initiation of a nationwide campaign. Subsequently, similar operations were conducted in various states, including Uttar Pradesh, Madhya Pradesh, Rajasthan, Delhi, Maharashtra, Kerala, Punjab and Haryana.
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