The CBIC has issued Instruction No. 02/2024-GST dated 12.08.2024, outlining the implementation of a second Special All-India Drive against fake GST registrations. The drive, which will run from August 16, 2024, to October 15, 2024, aims to detect, verify, and take action against suspicious or fake GSTINs (Goods and Services Tax Identification Numbers). The initiative is a continuation of a successful 2023 drive, focusing on ensuring the integrity of the GST system and preventing revenue loss. This initiative is part of a broader effort to maintain the integrity of the GST system, ensuring that only legitimate entities are registered and active, thereby protecting government revenue from fraudulent activities.

Following guidelines are issued for such concerted action on suspicious/ fake registrations during the special All-India drive during this year:

Period of the Drive: The drive will be conducted from August 16, 2024, to October 15, 2024

Identification of Suspicious GSTINs: GSTN, along with the Directorate General of Analytics and Risk Management (DGARM), will identify high-risk GSTINs through data analytics. These GSTINs will be shared with respective Central and State tax authorities for verification. Tax authorities may also use their own data analysis tools and intelligence to identify additional suspicious GSTINs.

Actions by Field Formations: Jurisdictional tax officers must verify the suspicious GSTINs and take prompt action, including suspension and cancellation of registrations if the taxpayer is found to be non-existent or fictitious. Blocking of input tax credit, demand, and recovery actions may be initiated where necessary. Information about suspicious GSTINs will be shared between jurisdictions via the ‘Initiate Enquiry’ module in the GSTN Back Office portal.

Feedback and Reporting Mechanism: Weekly reports on the actions taken must be submitted by each state and CGST zone through their nodal officers. Unique modus operandi detected during the drive should be reported and shared for broader awareness.

Monitoring and Coordination: Senior officials at Central and State levels will monitor the progress of the drive. The GST Council Secretariat will compile and present findings to the National Coordination Committee.

The Complete Instruction can be accessed at https://taxo.online/wp-content/uploads/2024/08/ins-gst-no-02-2024.pdf