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Key Points

GST authorities have arrested 117 people over two fiscal years for fake registrations using forged documents. Fraudulent firms evaded taxes by generating fake invoices worth ₹13,109 crore in FY25 alone. The government has introduced biometric Aadhaar verification to curb such scams. Minister Pankaj Chaudhary confirmed stricter document checks to prevent future frauds.

Key Points: 117 Arrested for Fake GST Registrations in 2 Years Says Minister

  • 50 arrested in FY25 and 67 in FY24 for fake GST registrations
  • ₹13,109 crore fraud detected in FY25
  • 3,977 firms identified in fake invoicing cases
  • Biometric Aadhaar authentication now mandatory for GST registrations
2 min read

117 people arrested for fake GST registrations in 2 fiscal years: Minister

GST authorities arrested 117 people for fake registrations using forged PAN/Aadhaar, detecting ₹13,109 crore fraud in FY25.

"To ensure fake registrations are not granted, documents are cross-verified from publicly available sources – Pankaj Chaudhary"

New Delhi, Aug 18

To weed out fake and bogus GST registrations, tax authorities arrested 50 people in FY 2024-25 and 67 people in FY 2023-24, the Parliament was informed on Monday.

Two special drives against fake Input Tax Credit and fake registrations were launched during the financial year 2023-24 and 2024-25 in coordination between the state and Central GST administrations, Minister of State for Finance, Pankaj Chaudhary, said in a written reply to a question in Lok Sabha.

The tax authorities launched 33 prosecution drives in FY25, down from 53 in FY 2023-24.

Cases have been detected where fraudulent Goods and Services Tax (GST) registrations have been obtained using forged or stolen PAN and Aadhaar credentials, resulting in fake/bogus invoicing and passing of ineligible Input Tax Credit, thereby evading GST.

In FY25, Rs 13,109 crore was detected in fake/bogus GST registrations, and 3,977 firms were identified in such cases, according to the minister.

The tax authorities also identified 1,654 cases of fraudulent GST registrations obtained by using stolen or forged PAN/Aadhaar details of other people last fiscal.

Biometric-based Aadhaar authentication, driven by data analytics and risk-based parameters, has been implemented for processing GST registration applications throughout the country. All registration applications are assigned a risk rating by the system based on data analytics and risk parameters. These ratings are made available to the field formations of CBIC to enable them to conduct proper verification and further processing of applications.

"To ensure that fake registrations are not granted, the authenticity of the documents furnished as proof of address is cross-verified from publicly available sources, such as the websites of the concerned authorities, land registries, electricity distribution companies, municipalities, and local bodies," the minister said.

The Directorate General of Analytics and Risk Management (DGARM) has initiated an exercise to identify anomalies in digital information provided by the proprietorship firms at the time of GST registration.

GST registrations are identified, shortlisted, wherein misuse of individual credentials like PAN is suspected. These suspect GSTINs are shared with field formations for appropriate verification.

- IANS

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Reader Comments

S
Shreya B
Rs 13,109 crore fraud detected! That's our tax money being stolen. Good that biometric authentication is being implemented, but why did it take so long? The system needs to be more proactive.
A
Aman W
As a small business owner, I face so much GST compliance burden while these fraudsters operate freely. Hope the crackdown continues and makes the system fair for all.
P
Priya S
The real concern is stolen Aadhaar/PAN being used. Government must improve security of these documents. Common people suffer when their IDs are misused like this.
V
Vikram M
While the action is good, the numbers seem small compared to the scale of fraud. There must be thousands more fake registrations. The system needs complete overhaul with better tech solutions.
K
Kavya N
This is why we need digital India initiatives! More tech integration will reduce such frauds. But government should also educate small businesses about GST compliance to prevent accidental violations.
D
David E
Interesting to see India tackling tax fraud systematically. The biometric authentication approach seems promising. Hope the enforcement remains consistent across states.

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