The Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, GST Policy Wing, has observed the problem of unscrupulous elements obtaining fake GST registrations and defrauding the government by issuing invoices without any genuine supply of goods or services. This fraudulent practice has resulted in revenue loss and poses a serious challenge. To address this issue, a meeting is scheduled to discuss suitable policy and system-based measures.
The issuance of fake registrations and bogus invoices for passing fake input tax credit (ITC) has become a significant concern. Unscrupulous individuals engage in dubious transactions, causing revenue loss and harming genuine taxpayers. Additionally, these individuals misuse the facility provided on the GST portal to edit liability and ITC in GSTR-3B returns, further facilitating the passing of fake ITC without fulfilling the necessary requirements. To tackle this problem effectively, the government is examining the matter and seeking suggestions from trade and industry representatives, tax professionals, and practitioners.
To combat the issue of fake GST registrations and fraudulent practices related to ITC, the government is taking proactive measures. A meeting is scheduled to seek suggestions and inputs from various stakeholders. Trade and industry representatives, tax professionals, and practitioners are invited to attend the meeting and contribute their ideas. It is essential to address this menace and protect the interests of genuine taxpayers while ensuring the integrity of the GST system.
F. No. CBIC 20016/2/2023-GST | 532 to 535
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
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Room No. 159-A,
North Block, New Delhi
Dated: 13th June, 2023
MEETING NOTICE
Instances have come to notice regarding unscrupulous elements obtaining fake/ bogus registration under GST and defrauding the Government exchequer. Such 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. This menace of fake registrations and issuance of bogus invoices for passing of fake ITC has become a serious problem, wherein fraudulent people engage in dubious and complex transactions, causing revenue loss to the government. It has also come to notice that such unscrupulous elements are also misusing the facility provided on the portal for editing of liability as well input tax credit in auto-populated GSTR-3B returns, without any limitation, for passing on fake input tax credit without availability of due input tax credit with them or without payment of due tax liability to the Government. This is causing not only a loss to Government exchequer, but is also against the interest of genuine taxpayers.
2. In view of this, the matter is being examined for taking suitable policy and system based measures to curb this menace of fake/ bogus registrations and fake input tax credit. It has been decided to have consultation with the trade and industry as well as with tax professional and practitioners, to invite suggestions on the measures to be taken for achieving the above mentioned objectives.
3. Accordingly, a meeting of the various representatives of Trade and industry, as well as of tax professionals and tax practitioners, is being convened in person, under chairmanship of Revenue Secretary on 17th June, 2023 in New Delhi from 11:30 AM onwards. You are requested to kindly make it convenient to attend the said meeting.
The venue for the meeting is:
Conference Room,
Goods & Services Tax Network,
East Wing, 4th Floor, World Mark-I,
Aerocity, New Delhi – 110037
4. It is also requested that the name and the contact details of the person, attending the said meeting from your organization may please be communicated by return email to alokkumar.irsagov.in and samdariya.amit@gov.in by 15.06.2023 positively. In case of any difficulty, you may contact Shri Amit Samdariya, Deputy Commissioner on Phone number 8800101641.
(Sanjay Mangal)
Principal Commissioner (GST)
To,
Representatives of Trade and Industry, as well as of tax professionals and tax practitioners (as per list enclosed)
Copy to
1. Sr. PPS to Revenue Secretary, Ministry of Finance, New Delhi for information please.
2. Sr. PPS to Chairman, Central Board of Indirect Taxes and Customs, New Delhi for information please.
3. PPS to Member (GST), Central Board of Indirect Taxes and Customs, New Delhi for information please.
4. The CEO, Goods & Services Tax Network (GSTN), New Delhi with a request to kindly attend the said meeting and for making requisite arrangements for the said meeting.
