The federal government has cancelled Items and Companies Tax (GST) registration of over 163,000 enterprise entities attributable to non-filing of tax returns for greater than six months to curb the menace of fly-by-night operators who create bogus companies and fraudulently avail enter tax credit score (ITC) price hundreds of crores, two officers stated.

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

“All these enterprise entities, who had not filed their GSTR-3B returns for greater than six months, have been first issued the cancellation notices after which their registrations have been cancelled as per customary working process,” one of many 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 achieved up to now in respect of GST taxpayers who’ve didn’t file returns for greater than six months, he stated.

“Additional, 28,635 registered entities who haven’t filed their GSTR-3B returns for greater than six months as December 1, 2020 have been recognized and the tax authority has suo motu initiated cancellation course of in these circumstances,” 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. Inside one month, the Directorate Basic of GST Intelligence (DGGI) and Central GST Commissioner’s have up to now arrested 132 individuals, together with 4 chartered accountant and a girl for availing or passing on ineligible ITC fraudulently and have booked 1,430 circumstances in opposition to greater than 4,586 bogus entities, a second official stated.

“The tax authority can also be scanning newly registered entities that haven’t supplied right particulars on the time of registration. Out of 720 deemed registrations granted between August 21 and November 16 this yr, the place Aadhaar authentication was not achieved, 55 deemed registrations have been recognized for discrepancy and the method of cancellation was initiated in these circumstances,” the primary official stated.