“Tax officers have detected round 10,700 pretend registrations below the GST, involving evasion of ₹10,179 crore within the ongoing all-India drive in opposition to pretend corporations set as much as defraud the exchequer,” a senior official mentioned on Tuesday (September 24, 2024).
Central Board of Oblique Taxes and Customs (CBIC) member Shashank Priya mentioned Aadhaar authentication of GST registration is already in place in 12 States and by October 4, one other 4 States would be part of.
Finally, 20 States, together with Madhya Pradesh, Rajasthan, Assam, Tamil Nadu, Uttar Pradesh and Haryana, will begin Aadhaar authentication. Talking at an Assocham occasion, Shashank Priya additionally mentioned that in future, the tax authorities may additionally put sure restrictions on new taxpayers based mostly on their danger profile.
“What number of invoices they’ll difficulty in a month, we may additionally put some restriction on that sooner or later… We really feel very pained on the misuse of the system. Now we have to make use of all strategies which might be at our command to make sure that these are stopped,” he mentioned.
The CBIC official additionally mentioned that the federal government is taking focused motion to test pretend GST registration and extra bodily verification is going down. The second all-India drive in opposition to pretend registration started on August 16 and can proceed until October 15.
He mentioned the tax authorities have recognized 67,970 GSTINs. Of this, 59% of the GSTINs or 39,965 have been verified as of September 22.
Shashank Priya mentioned, “27% have been discovered to be non-existent. This share is nearly related in comparison with the final drive. Now we have detected evasion of ₹10,179 crore. Blocked ITC of ₹2,994 crore. Additionally, restoration of ₹28 crore has been finished (within the second drive until September 22).”
Within the first drive in opposition to pretend registration between Might 16, 2023 and July 15, 2023, a complete of 21,791 entities having GST registration had been found to be non-existent. An quantity of ₹24,010 crore of suspected tax evasion was detected throughout the first particular drive final 12 months.
“Within the GST regime, there’s a drawback of information mismatches which is resulting in a couple of lakh present trigger notices (SCNs) being issued final fiscal by tax officers,” he mentioned.
“Going ahead, we’re proposing sooner or later in time, we’ve not determined when there shall be a system to lock (GSTR-3B). However earlier than that, we are going to ensure that all of the areas, all of the channels by means of which enter tax comes they’re mirrored within the ledgers and returns in order that they’re populated to GSTR-3B after which it’s locked. However that’s for the longer term,” Shashank Priya mentioned.
He mentioned that going ahead as soon as the GSTR-1A and the Bill Administration System (IMS) stabilise, there can be no want for an edit facility of GSTR-3B. “No matter determine goes in GSTR-3B that will get locked in. That might be a super scenario for taxpayers and tax administration,” he added.
GSTR-1A offers an choice to taxpayers to amend outward provide or gross sales return kind (GSTR-1), whereas GSTR-3B is used to pay taxes month-to-month.
Individually, GSTN would begin the IMS from October 1, which can facilitate taxpayers in matching their information/invoices vis-a-vis issued by their suppliers for availing the right Enter Tax Credit score (ITC). IMS would allow taxpayers to effectively tackle bill corrections/ amendments with their suppliers by means of the portal. Throughout 2023-24, Shashank Priya mentioned, 1,12,852 present trigger notices had been issued.
The main areas of dispute are brief cost of GST in GSTR-3B as in comparison with GSTR-1 legal responsibility, extra ITC availed in GSTR-3B, non-payment of GST below reverse cost mechanism, curiosity for late submitting of GSTR-3B and GSTR-1, ITC availed past prescribed time restrict, distinction in taxable worth in e-way invoice issued and taxable worth reported in GSTR-3B, and classification points.
“Out of the seven main areas of disputes, six relate to knowledge discrepancies. So if we will tackle knowledge mismatches by use of expertise, then we can clear up a number of disputes and ache factors of the taxpayer,” he mentioned.
Out of the 1.12 lakh SCN, solely 555 pertains to classification disputes. “So coverage stage disputes are a lot much less,” he mentioned, including that the CBIC is analysing these classification disputes to see if any coverage pointers to deal with them.
Printed – September 24, 2024 04:41 pm IST
