Actions has been taken against GST fake billing in past 2 years after introduction of GST. After GST was implemented, there was more tax evasion, so the state government seems to have made it harder for people to get away with it. In Gujarat, where fake billing scams and tax evasion are becoming more common, actions have been taken against 17,229 people in the last two years, according to data presented in the state assembly during question hour.
Sources in the state GST department said that these actions include arrests, the cancellation of GST numbers, and the recovery of taxes that were not paid.
From February 1, 2022, to January 31, 2023, Gujarat collected Rs.54,528.67 crore in taxes. This is up 25% from Rs.43,779.41 crore during the same time period the year before.
Gujarat is getting better at collecting taxes, but the number of people who don’t pay taxes is also going up. The state goods and services tax (SGST) department’s preliminary data shows that at least Rs.7,224 crore worth of fake billing was used to avoid taxes last year.
The SGST department in Gujarat recently found a Rs.4120 crore fake billing scam that involved 74 fake companies in Ahmedabad and Surat. This scam caused Rs.137 crore in tax evasion.
The state commercial tax department is using raids, spot verification drives, and big data analytics to find people who are getting GST registration numbers by lying about who they are.