Report: GST Fraud of ₹15,000 Crore Unveils Leading Food Delivery Service and Other Entities Under Scrutiny

The Central Board of Indirect Taxes and Customs (CBIC) has initiated an extensive campaign to combat fraudulent accounts registered with the Goods and Services Tax Network (GSTN) in India. Shockingly, the results of their efforts have revealed that nearly 25% of the identified entities, responsible for wrongfully availing benefits worth approximately ₹15,000 crore, either do not exist or have disappeared, as reported by The Times of India (TOI).

The identification of these suspects was the outcome of a meticulous examination of the massive GST payer database, which encompasses a staggering 1.4 crore entries. Utilizing advanced artificial intelligence and data analytics, authorities diligently scrutinized a database of around 69,000 suspects. During the ongoing two-month-long operation, approximately 17,000 fraudulent accounts were exposed for exploiting fictitious input tax credit, according to the publication.

Significantly, the investigation extends across various entities in the supply chain, including prominent players in the business sector.It has come to light that a prominent food delivery service provider has engaged the services of entities that do not actually exist.. Previous initiatives have also exposed similar instances of malpractice.

Government sources revealed to TOI that Delhi has witnessed a high success rate in uncovering fake registrations.

Building upon the recent crackdown, CBIC is now devising plans for regular assessments to prevent the misuse of benefits. Furthermore, the agency plans to enhance regulatory measures by reversing certain allowances that were implemented to ease tax payment obligations for suppliers amid the pandemic

According to senior officials who spoke to TOI, the GST Council has already finalized decisions regarding these issues, and the implementation process is currently in progress. The primary objective is to prevent leakages and reinforce the integrity of the system.

The upcoming GST Council meeting is expected to deliberate on this issue, during which the details will be shared with state finance ministers. However, officials have dismissed the notion of imposing stricter registration norms, emphasizing that the focus is on streamlining the process for honest taxpayers instead of burdening them with excessive compliance.