The nationwide crackdown by the goods and services tax (GST) authorities has successfully uncovered tax evasion amounting to Rs 19,492 crore. This special drive, which lasted for two months and ended on July 15, was initiated to combat tax evasion at both the central and state levels. The focus of the drive was to scrutinize and identify fake GST registrations and apprehend offenders engaged in fraudulent activities related to the GST.
During the drive, the authorities detained 7-10 individuals who were allegedly benefiting from fake tax claims. Additionally, they were able to block fake input tax credit claims worth Rs 6,200 crore. Input tax credit is a mechanism that allows businesses to claim credit for the taxes paid on their purchases, which can then be offset against their tax liability.
The government official, who provided the information to Business Standard, stated that this special drive was a significant step in identifying and preventing tax evasion in the GST system. By targeting and curbing fraudulent activities, the authorities aim to ensure the integrity and effectiveness of the GST regime, which is crucial for revenue collection and the overall functioning of the tax system.
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