25 arrested in govt crackdown against GST fake invoicing | Mint
Active Stocks
Fri Feb 23 2024 13:47:01
  1. Tata Steel share price
  2. 146.25 0.27%
  1. State Bank Of India share price
  2. 759.45 -0.85%
  1. HDFC Bank share price
  2. 1,423.95 0.29%
  1. NTPC share price
  2. 337.20 -0.69%
  1. Wipro share price
  2. 535.95 0.88%
Business News/ News / India/  25 arrested in govt crackdown against GST fake invoicing
BackBack

25 arrested in govt crackdown against GST fake invoicing

Increasing instances of non-compliance has prompted govt to tighten the process for new GST registration

Bogus invoices were issued against more than 1,100 entities, DGGI said. Mint (MINT_PRINT)Premium
Bogus invoices were issued against more than 1,100 entities, DGGI said. Mint (MINT_PRINT)

Revenue officials arrested 25 people and filed 350 cases of fake invoicing, in a major drive against tax evasion, said an official of the Directorate General of GST Intelligence (DGGI), on conditions of anonymity.

The fake invoices were used to evade goods and services tax (GST) and income tax and to divert funds from companies, the official said. The fake invoices were issued against more than 1,100 entities, he said.

Fake invoices are also used to show non-existent transactions to hike figures on the books to obtain loans from banks and to siphon off funds and also to claim GST refunds for exporters.

Increasing instances of non-compliance has prompted the government to tighten the process for new GST registration, he said.

The new rules mandate business owners or promoters not having commensurate income-tax payment records to undergo physical and financial verification process before their companies can be given GST registration, said the official.

Investigations showed that fake invoices are issued rampantly for certain products such as metals, plastic granules, ready-made garments, gold and silver, construction services, work contract services, agro products, manpower supply and advertisement, and animation services, he said. The enforcement directorate (ED) will also investigate the cases, said the official.

Direct and indirect tax authorities have been scaling up the use of technology and data analytics to identify businesses with poor compliance track record. This is expected to gain further momentum with the sharp reduction in tax revenues this year.

The GST authorities have made electronic invoicing (e-invoice) compulsory for businesses with sales of more than 500 crore from 1 October.

Come 1 April 2021, e-invoice services will be extended to businesses with sales of more than 100 crore. The move will help officials get an idea of the transactions taking place in the economy on a real-time basis and enable them to pre-empt fraud.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Gireesh Chandra Prasad
Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 16 Nov 2020, 08:30 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App