GUIDELINES FOR SPECIAL ALL-INDIA DRIVE AGAINST FAKE REIGSTRATION ISSUED VIDE INSTRUCTION NO. 01/2023-GST ON 4TH MAY 2023.
Fake/non-genuine registrations are being used to fraudulently pass on input tax credit to unscrupulous recipients by issuing invoices without any underlying supply of goods or services or both.
Various modus operandi of obtaining fake registrations have been detected by central and state tax administrations such as forged electricity bill, property tax receipts, rent agreement etc., are being used as proof of principal place of business to obtain GST registration.
It was agreed that a nation-wide effort in the form of a Special Drive should be launched to detect such suspicious/fake registrations and to conduct requisite verification for timely remedial action to prevent further revenue loss to the government.
The Special Drive period is from 16th May 2023 to 15th July 2023.
GSTN will identify such fraudulent GSTINs for state and central tax authorities based on detailed data analytics and risk parameters, and GSTN will share the details of such identified suspicious GSTINs, jurisdiction wise, with the concerned state/central tax administration (through DGARM in case of central tax authorities) for initiating verification drive and conducting necessary action subsequently.
A nodal officer shall be appointed immediately by each of the Zonal CGST Zone and State to ensure seamless flow of data and for coordination with GSTN/DGARM and other Tax administrations.
The nodal officer will ensure that the data received from GSTN / DGARM / other Tax administrations is made available to the concerned jurisdictional formation.
If the Taxpayer is non-existent and fictitious, then the tax officer may immediately initiate action for suspension and cancellation of the registration of the said taxpayer.
Further, the matter may also be examined for blocking of input tax credit in electronic credit Ledger without any delay.
Additionally suitable action may be initiated for demand and recovery of the ITC wrongly availed by such recipient where the recipient GSTIN pertains to the Jurisdiction of the said tax authority.
In case where the recipient GSTIN pertains to a different tax jurisdiction, the details of the case may be sent to the concerned tax authority as early as possible.
Action may also be taken to identify the masterminds/ Beneficiaries behind such fake GSTIN for further action such recovery of dues / provisional attachment of property / bank account.
The Unique modus operandi found during this special drive will be subsequently shared with the Central and State Tax Administrations across the country.
Successful implementation of the Special Drive would require close coordination amongst the state tax administrations and between state and central tax administrations.
