The government has canceled 1,63,042 registrations in the month of October and November this year to check the menace of fraudulent GST.

The government is cracking its whip on fraudulent GST and the menace of fake firms, fly-by-night operators, and circular trading entities. To keep these in check, 1,63,042 registrations in the month of October and November this year have been cancelled due to the non-filing of GSTR-3B returns for more than 6 months.

Within one month of its nationwide drive launched in the second week of November against GST fake invoice frauds, the Directorate General of GST Intelligence (DGGI) and CGST Commissionerates has so far arrested 132 persons including four Chartered Accountant and a woman for availing or passing on ineligible ITC (input tax credit) fraudulently and have booked 1430 cases against more than 4586 fake GSTIN entities identified across the country.

Sources told India Today that a Chartered Accountant Akshay Jain was arrested from Visakhapatnam for involving in the issuing of fake ITC to the tune of Rs. 20.97 crore on the invoices of cement by creating 14 fake firms without supply of goods. The investigation is going on.

DoR sources said that all these GSTIN entities who had not filed their GSTR-3B returns for more than 6 months were first issued the cancellation notices and then their registrations were cancelled as per SOP.