GST fake invoices more than double in one year; these states see maximum cases of fraud : 18-03-2020

Even as the government aims to make GST more streamlined every day, the fraud cases related to fake GST invoices are on a rise. The fraud cases related to fake GST invoices have more than doubled in last year. In FY19, there were 1620 cases related to fake invoices, which more than doubled to 3866 cases in the current fiscal till January. Most cases have been detected in Delhi, including fraud of Rs 3957.9 crore, according to data provided by Anurag Singh Thakur, MoS, Ministry of Finance, in a reply to a question in Rajya Sabha. Recently, the Anti Evasion Wing of Central GST detected a case of fraud in Delhi by “M/s Haryana Excell Forging” that included a sum of Rs 241 crore. 

After Delhi, Haryana, Rajasthan, Tamil Nadu, and Gujarat, have detected the maximum number of cases related to fake GST invoices. At a time when the government is already struggling with low revenue collection, cases of fraud are making a further dent in the government’s pocket and its ability to spend. The government has recently introduced e-invoicing with the aim to bring in more ease and transparency in the GST filing process.

“Menace of the fake invoices is hitting the public exchequer more than what coronavirus is hammering the public health. The government is going through the worst phases in history whereby the financial health of corporates, physical health of the public, and fiscal health of exchequer are under fire at the same time,” Rajat Mohan, Senior Partner, AMRG & Associates, told Financial Express Online. Tax authorities must identify and apprehend tax evaders with the help of copious digital initiatives of the government, he added.