Delhi has earned the dubious distinction of having the highest amount of goods and services tax (GST) evasion by bogus firms in the third quarter of 2023-24 financial year.
According to officials, between Oct and Dec 2023, 483 bogus firms were busted in the capital, which were involved in suspected GST evasion of Rs. 3,028 crore. Delhi was third only to Maharashtra (926) and Rajasthan (507) in the number of bogus GST firms that were detected by the authorities in the third quarter of FY24.
They, however, added that the suspected amount of GST evasion in Maharashtra and Rajasthan was estimated at Rs. 2,201 crore and Rs. 197 crore only, respectively.
GST formations, under the Central Board of Indirect Taxes and Customs, and respective state and union territory govts have been carrying out a drive since May 2023 to identify bogus registrations and issuance of fake invoices without any underlying supply of goods and services.
The officials of the trade and taxes department claimed that measures were being taken to check the entry of fake firms in the GST network.
“We have set up a centralised GST registration cell to receive and process new applications. This has helped in bringing down the number of deemed registration of firms and thus restricted the entry of bogus trading firms, curbing GST evasion and subsequent revenue loss to the government,” said an official, requesting ananymity.
Read more at: The Times of India
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