1.63 Lakh GST Registrations Cancelled For Violating Tax Rules; 28,635 Tax Payers Identified

In one of the biggest ever disciplinary actions ever taken, Govt of India has straight away cancelled 1.63 lakh GST registrations of various businesses, across India.

This strict move was taken because they broke a very important GST rule.

Keep reading to find out more!

1.63 Lakh GST Registrations Cancelled By Govt Of India

In the month of October and November, Govt of India cancelled 1.63 lakh GST registrations, for not following GST rules.

For more than 6 months, these businesses failed to file the monthly GST returns, which was a clear violation of GST rules.

Around 28635 tax payers have been identified for breaking the GST filing norms, and action may be taken against them as well.

GST Return Form 3B needs to be filed every month, and these 1.63 lakh GST registered businesses failed to file this monthly return.

Central GST officials and Directorate General of GST Intelligence (DGGI)  has been on a surveillance mode to detect tax evasion, and to nab those unethical businesses which use fake invoices to avoid paying GST.

This move to cancel GST registrations is part of this initiative.

132 People Arrested By GST Officials

The issue of fake tax credits is indeed serious, and a nation-wide crackdown has been already initiated.

Around 132 people have been arrested for facilitating this GST fraud, and this also includes Chartered Accountants, who created such fake input tx credit invoice to evade GST.

Around 1400 cases have been booked against 4500 fake registered companies, which were being used to generate fake invoices to avail GST exemptions.

One of the CAs arrested has allegedly created 14 fake companies for these fake input tax exemptions.

Income Tax officials are now increasingly using technological tools and data analytics software to track and monitor such companies that are attempting to evade GST by frauds.

We will keep you updated, as more details come in.