GST fraud: Drive launched to identify fake firms in Faridabad

To identify fake enterprises under the GST governance and nab malefactors, state and
central GST cells of the Taxation Department have launched a drive for physical verification
of similar units establishments in the quarter. Reportedly, 400 similar units are under the
scanner in the quarter. For better policy expression The verification was part of the drive
to give intelligence inputs and carry out big data analytics to help duty officers for better
policy expression and busting
evaders. The effort will involve reviewing transaction records from the past year or more to
ensure there is no fraud in the process, tax officials said. The action will focus on companies
whose data the center provided, but the scope of the investigation could be broader, the
official said, asking not to be identified.
The promotion, which will run until mid-July, should curb any fraud based on GST
registration and tax evasion. Of the total 77,641 units registered in the district, 42,592 and
35,049 fall under his GST in the province and central respectively. Registration takes 7 to 30
days as it is done online.

However, officials say many businesses do not have proper addresses or records of financial
transactions and are likely to evade tax even though they are registered for GST. Although
action has been taken against some companies in recent years, such violations still occur.
The Taxation Department discovered errors in the submission of tax returns by a private
company in April of last year, which led to the discovery of a scam totaling Rs 25.11 crore in
the Palwal district. The scam was discovered after a business that dealt in cigarettes and bidis
submitted a cancellation of registration request on April 1, 2015. In the investigation,
fraudulent interstate transactions were found.

Tanishka Kamari

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