The Central Government has initiated a major campaign to identify and eliminate fraudulent GST registrations linked to extensive input tax credit (ITC) scams. This effort, led by both central and state GST authorities, aims to curb illegal practices and protect the integrity of the tax system.
Revenue Secretary Sanjay Malhotra called on GST authorities to intensify their focus on fake registrations during this two-month special drive. He emphasized the importance of tracking down the key orchestrators and beneficiaries of these fraudulent ITC claims, stressing that strict action will be taken to create a strong deterrent against such illegal activities.
Speaking at the second National Conference of Enforcement Chiefs of GST formations, Malhotra highlighted recent reforms in GST returns, including the introduction of GSTR-1A, which are designed to streamline the detection and prevention of tax evasion in a more systematic manner.
He also pointed out the need for a balanced approach that ensures both effective enforcement and the ease of doing business. The goal is to foster a transparent and compliant tax environment without hindering legitimate business operations.
The participants at the one-day conference were briefed on the details of the special drive, which launched on August 16. The drive, conducted in close coordination between central and state authorities, will scrutinize nearly 59,000 firms identified as potentially fraudulent based on specific risk indicators. These firms will undergo verification and further investigation.
The conference was attended by top officials from the Department of Revenue, Central Board of Indirect Taxes and Customs (CBIC), and senior GST enforcement officers from across the country. Other key enforcement and intelligence agencies, such as the Directorate of Revenue Intelligence (DRI) and Financial Intelligence Unit (FIU), also contributed to the discussions, reinforcing the government's commitment to eradicating fraud in the tax system.
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