Govt cancels GST registration of 163k biz entities over non-filing of tax returns

The authorities has cancelled Goods and Services Tax (GST) registration of over 163,000 enterprise entities as a consequence of non-filing of tax returns for greater than six months to curb the menace of fly-by-night operators who create bogus corporations and fraudulently avail enter tax credit score (ITC) price 1000’s of crores, two officers stated.

To deal with the menace of pretend corporations and round buying and selling entities, GST officers have cancelled 1,63,042 registrations within the month of October and November this yr as a consequence of non-filing of GSTR-3B returns for greater than six months , the finance ministry officers stated, requesting anonymity.

“All these business entities, who had not filed their GSTR-3B returns for more than six months, were first issued the cancellation notices and then their registrations were cancelled as per standard operating procedure,” one of the officers stated. GSTR-3B is a abstract assertion of enterprise transactions filed by a registered entity each month.

In Ahmedabad zone alone, 11,048 GST registrations have been cancelled. In Chennai zone, 19,586 suo motu cancellations have been accomplished to this point in respect of GST taxpayers who’ve didn’t file returns for greater than six months, he stated.

“Further, 28,635 registered entities who have not filed their GSTR-3B returns for more than six months as December 1, 2020 have been identified and the tax authority has suo motu initiated cancellation process in these cases,” he added.

The tax authority has final month launched an enormous crackdown in opposition to pretend entities indulging in issuing bogus invoices to fraudulently usurp ITC. Within one month, the Directorate General of GST Intelligence (DGGI) and Central GST Commission charges have to this point arrested 132 individuals, together with 4 chartered accountant and a girl for availing or passing on ineligible ITC fraudulently and have booked 1,430 instances in opposition to greater than 4,586 bogus entities, a second official stated.

“The tax authority is also scanning newly registered entities that have not provided correct details at the time of registration. Out of 720 deemed registrations granted between August 21 and November 16 this year, where Aadhaar authentication was not done, 55 deemed registrations have been identified for discrepancy and the process of cancellation was initiated in these cases,” the primary official stated.


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