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GST Guidelines to curb the ongoing malpractice of fake registrations & fake invoicing
CBIC issued detailed guidelines for all India to curb the ongoing malpractice of fake registrations & fake invoicing vide Instruction No. 01/2023-GST, dated 04th May, 2023.
- In a recent meeting of the state and central GST officers a very pertinent issue was discussed regarding fake invoicing, passing of false ITC through obtaining GST registration on false or forged documents, tampering adhaar details and contact no.
- To curb this issue it has been decided to issue a single instruction wherein a special drive with coordination of both state & centre to prevent loss of revenue and to prevent the identity of the genuine taxpayers. This special Drive shall run between 16th May 2023 to 15th July 2023.
- Identification of fraudulent GSTINs shall be done on the following modes:a. GSTIN shall identify these GST No. through detailed data analytics and risk parameters,b. Field formations may also be used by using analytical tools like BIFA, ADVAIT, NIC Prime, E-Way analytics, etc,c Though human intelligence, Aadhar database, other local learnings and the experience gained through the past detections.
- Close coordination between state and central authorities is required in this regard. Accordingly a nodal officer shall be appointed for each zone by state and centre and details of the same shall be submitted with the GST Council Secretariat within 3 days. The Nodal officer shall ensure proper flow of data received from various sources to the concerned jurisdictional formation within 2 days.
- On the receipt, a time bound exercise of verification of the suspicious GSTINs shall be undertaken by the concerned jurisdictional tax officer(s). Following actions may be taken:a. If it is found that the taxpayer is non-existent and fictitious, then the registration shall be suspended or cancelled immediately as per Sec 29.b. Blocking of ITC as per Rule 86A can also be done if the situation warrants so without any delay.c. Recipients of ITC shall be identified through details of GSTR-1 and action against the recipient shall be taken by the same officer if GSTIN pertains to his jurisdiction on the grounds of wrong ITC availment without supply of goods or services or both. In cases, where the recipient GSTIN pertains to a different tax jurisdiction, the details shall be forwarded immediately to concerned jurisdiction with all documents/ evidence, in Annexure-B, as annexed with the instruction.d. Further, action shall be taken to identify and initiate recovery, attachment of property or bank account against masterminds/ beneficiaries behind such fake GSTIN.
- A weekly report shall be submitted by each Zones to GST Council Secretariat in Annexure-A attached in the copy of instruction along with any novel modus operandi detected. Further, on conclusion of the drive, GSTIN-wise report shall be submitted GSTN/ DGARM, in Annexure-C.
A good initiative to curb the malpractices. Document Copy attached herewith.
F.No CBIC 20/16/05/2023 GST
The copy of the order is as under: