In a bid to tackle fraudulent GST registrations, the Central Board of Indirect Taxes and Customs (CBIC) has announced the launch of a second nationwide drive starting August 16. This two-month initiative aims to address and rectify issues related to fake GST registrations, following a significant operation conducted last year.

The previous drive, conducted in May of the last year, uncovered approximately 22,000 fake GST registrations. These fraudulent entries were linked to an estimated GST evasion of over ₹24,000 crore. In response to these findings, the National Coordination Committee, which includes senior officials from both central and state tax authorities, has decided to intensify efforts to cleanse the tax base.

Under the new special drive, the GST Network will collaborate with the Directorate General of Analytics and Risk Management (DGARM), CBIC, to scrutinize GST Identification Numbers (GSTINs). The initiative will employ advanced data analytics and risk assessment tools to identify suspicious or high-risk GSTINs. Once identified, this information will be forwarded to the respective jurisdictional tax officers for thorough verification and action.

This concerted effort aims to curtail GST fraud and ensure the integrity of the tax system. By leveraging data analytics and risk management techniques, the CBIC seeks to improve compliance and bolster revenue collection, thereby enhancing the overall efficiency and credibility of the GST regime.

The upcoming drive reflects the government’s commitment to combating tax evasion and reinforcing the credibility of the GST system. Through these measures, officials hope to deter fraudulent practices and ensure that the tax system functions effectively and transparently.