INDIA: Government Identifies Thousands of GST “risky” Companies via Analytics!

Oct 30, 2020 | VAT Updates


GST fraud has been a big problem in India with many fake companies being created for the sole purpose of creating fake invoices and claiming GST refunds. A fake firm in Pune was identified recently that made over 5 million euro illegally. This person issued illegal invoices on a commission basis and was recognized and apprehended via data Analytics by the Unit of the Directorate General of GST Intelligence (DGGI).

Unfortunately Commenting on the Pune arrest, a second official said, “There is a lobby of businessmen, which gains from such fraudulent activities, and they oppose the arrest of the person despite a recorded confession. If left unchecked, such dubious companies would mushroom all over the country.”

Several other firms have been caught and several others have been identified and added in a database of “risky” exporters.

This type of data mining will continue to be used in order to identify “risky” companies and add them to the list. At the moment DGGI is keeping its non-intrusive approach but keeps a close eye on these firms as they continue to exist.

Source Credit : https://cfo.economictimes.indiatimes.com/

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