Bhubaneswar: After Central GST authorities cracked down on tax evasion and frauds in the Rourkela area, the state government has asked its field officials to nab fake businessmen who have got registered under GST.
Commercial Tax and GST Commissioner Bishnupada Sethi has written a letter to the heads of all GST circles and territories in Odisha regarding this.
Some individuals and fake business concerns have obtained registration under GST law. After obtaining registration they do not do any business, but just issue fake GST invoices without actually supplying goods or services, Sethi said.
Many such cases have been detected and some persons have been taken into custody by Central GST authorities, he said.
“In spite of stringent action by Central GST authorities there is no sign of fake registrations disappearing. Many are still making fake registrations every month,” the Commissioner said.
Sethi also told officials that fake registrations are being done mostly in the Sundargarh Range, and they are issuing mostly fake GST invoices regarding supply of iron and steel goods.
It appears that the officers in charge of GST registration are not doing due diligence while granting registrations, Sethi said in his letter.
Rule 9(2) of OGST/CGST empowers officers to check all information and documents submitted with the application for registration, and to issue notices.
There is ample scope to invoke this provision in such cases as fake taxpayers provide info on everything including place of business and place of residence, he said.
However, the registering authorities are not checking the information and documents submitted as is evident from the regular grant of registrations to fake business entities, he told GST circle heads.
Sethi asked the officials to examine the information and documents submitted with applications for registration diligently and to issue notices as and when required.
Field officials must be asked to conduct physical verification of business premises soon after grant of registration to prevent fake business concerns from issuing fake invoices or generating fake e-waybills.
“In case any registration is found to be fake in future the registering authority will be held accountable if he/she is found to have failed in carrying out due diligence both at the time of granting registration and after that,” the Commissioner said.
