CBIC Announces Guidelines for Second Special All-India Drive Against Fake GST Registrations
By: Admin
Date: August 12, 2024
Categories: CBIC | GST Law | Notification And Circular
Reading Time: 4 Minutes
Overview of the All-India GST Drive 2024
The CBIC issued Instruction No. 02/2024-GST on August 12, 2024. This guide covers the second special All-India drive against fraudulent GST registrations, running from August 16 to October 15, 2024. The drive aims to enhance the GST system by tackling and removing fake GSTINs. It builds on the success of the first drive and continues the effort to combat GST fraud.
Background and Insights from Previous GST Initiatives
The first special drive, from May 16, 2023, to August 14, 2023, successfully removed many fake GST registrations. Building on these achievements, the National Coordination Committee, led by the Member (GST) CBIC, has launched a second drive to address GST fraud more effectively.
Guidelines for the All-India GST Initiative
Duration and Goals of the Drive
The drive will run for two months, starting on August 16, 2024. Its main objectives are to identify and verify suspicious GSTINs and to remove non-existent entities from the GST system. Consequently, this will help protect government revenue.
Identifying Fraudulent GSTINs
Data Analysis and Risk Assessment: GSTN will work with the Directorate General of Analytics and Risk Management (DGARM) to analyze data and identify high-risk GSTINs. Central and State Tax authorities will then receive this information.
Additional Identification Tools: Analytical tools like BIFA, GAIN, ADVAIT, NIC Prime, and E-Way Bill Analytics, combined with human intelligence, will help find more suspicious GSTINs.
Actions by Field Formations
Verification and Cancellation: Tax officers will verify suspicious GSTINs. If they find a GSTIN to be non-existent, they will suspend and cancel it under Section 29 of the CGST Act.
Blocking Input Tax Credit: Officers will decide whether to block input tax credit in the Electronic Credit Ledger based on Rule 86A of the CGST Rules. They will focus on recipients of credits from non-existent taxpayers.
Recovery of Input Tax Credits: For those within the same jurisdiction, officers will recover wrongly claimed input tax credits. If recipients are outside their jurisdiction, officers will share details with the respective tax authorities for further action.
Coordination Between Jurisdictions: Each Zonal CGST Zone and State will have a nodal officer. This officer will manage coordination using the ‘Initiate Enquiry’ function on the GSTN Back Office portal.
Targeting Masterminds: The drive will also focus on individuals behind fake GSTINs. This might include provisional attachment of property or bank accounts under Section 83 of the CGST Act.
Reporting and Feedback
Weekly Reporting: States and CGST Zones must submit weekly reports in Annexure-A and Annexure-A1 formats to the GST Council Secretariat. This ensures effective monitoring.
Reporting New Fraud Techniques: Any new methods of fraud discovered should be reported. Furthermore, GSTIN-wise feedback on verification results will be provided at the end of the drive.
Monitoring and Compilation: The Principal Chief Commissioner/Chief Commissioner of Central GST Zones and the Chief Commissioner/Commissioner of States/UTs will oversee the drive’s progress. The GST Council Secretariat will compile reports and findings for the National Coordination Committee.
Conclusion
In summary, the second special All-India drive is vital for maintaining the GST system’s integrity. By removing fake registrations, the drive aims to prevent revenue loss and enhance compliance within the GST framework.
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