Thousands of entities and their beneficiaries that allegedly created multiple shell firms to represent fake transactions without any underlying goods and services for availing of input tax credit (ITC) are under the scanner of tax authorities. Goods and services tax (GST) officials have prepared a detailed list in this regard and will target such entities during a two-month-long special drive starting May 16.
Some of these entities showed a jump in their annual turnover in FY21, FY22, and FY23, raising suspicion, a senior official privy to the development said, adding that the matter required a thorough examination.
The special drive by the Central Board of Indirect Taxes and Customs (CBIC) is aimed at weeding out fake ITC claims by using forged GST registration. The exercise will be conducted by all central and state tax administrations and will continue till July 15. The list of suspected entities has been prepared based on the CBIC’s data.
Read more at: business standard
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