Two senior government officials said that artificial intelligence (AI) and Aadhaar registration would be used to differentiate suspected firms created for Goods and Services Tax (GST) evasion and to closely monitor their activities “. Risky “category.
The Customs Department has already created a database of “risky” exporters who fraudulently took advantage of Input Tax Credit (ITC) and nominated several firms, including Star Exporters. Now the same mechanism can be used for fake firms that claim GST refunds without actually conducting business, he said, requesting anonymity.
“It is surprising that many fake firms and shell companies have been created which create fake invoices to claim GST refunds. It has become an independent business, which must be dealt with an iron hand. Recently we caught the owner of a fake firm in Pune that illegally earned more than Rs 50 crore.
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The owner of a firm that conducts fake invoices on commission basis through some fake companies was arrested by Pune zone unit of Directorate General of GST Intelligence (DGGI). The official said that the person was arrested on October 21, 2020 from a remote village in Osmanabad district of Maharashtra. He was produced before a magistrate who rejected his bail application and sent him to judicial custody till 2 November.
Data analytics helped to catch a person’s dishonest activities, he said. He said, ‘Now the government is considering the use of Aadhaar in GST registration to check this menace of fake / fake firms and this can curb fake profits and passing of ITC.’
“Also, the Department of Revenue continues to have serious discussions. [DoR] To put such suspicious firms under the ‘risky’ category and block their refunds, apart from other necessary legal actions, “he said. The DoR is the arm of the Ministry of Finance that deals with matters relating to direct and indirect taxes. Is responsible for administration.
Commenting on the second arrest, the second officer stated, “Businessmen have a lobby, which benefits from such fraudulent activities, and they oppose the arrest of the person despite a recorded confession. If left unregistered If it goes, such suspicious companies will spread across the country. ”
“We have identified 115 fake firms among the nine GST commissioners with the help of data analytics. The crime was committed by a prospective chartered accountant based in Ahmedabad, who registered fake firms and falsely defrauded ITC of Rs 50.24 crore, ”he said.
He said, “The DGGI is non-intrusive, but is keeping a close watch on such suspicious and dishonest elements through rigorous data-mining and data analytics who take illegal advantage of ITC under the guise of professionals and steal GST Do, “he said. Officials said aspiring chartered accountants of third year students were involved in the registration of 115 non-existent firms.
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