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CBIC: identify & cancel fake/bogus GST registration

identify and cancel fake or bogus GST registrations

Second Special All-India Campaign to identify & cancel fake or bogus GST registrations

The CBIC along with state tax authorities, has launched the Second Special All-India Campaign to identify and cancel fake or bogus Goods and Services Tax registrations. This initiative aims to ensure a fair and compliant trade environment, reducing tax evasion and promoting transparency in the economy. However goods or Services  recipient cannot be held liable for circulating bogus invoices by the Supplier.

This campaign is a crucial step toward safeguarding the integrity of the Goods and Services Tax system, preventing fraudulent activities, and enhancing revenue collection. By working together, businesses and tax authorities can help build a stronger and more robust economy.

If you’re a business owner, it’s essential to ensure your Goods and Services Tax registration & compliance are in order. Participating in this initiative not only helps in creating a level playing field but also supports the broader goal of economic growth and stability.

GST fraud by focusing on identifying masterminds behind fraudulent schemes

The CBIC is intensifying its efforts to combat GST fraud by focusing on identifying the masterminds behind fraudulent schemes. The Central Board of Indirect Taxes and Customs has made it clear that strict action will be taken against individuals or entities involved in such tax evasion activities. Key measures being implemented include:

  • Suspension or Cancellation of GSTINs: If a GST Identification Number is found to be fraudulent or involved in illegal activities, it will be suspended or canceled. This action is part of the broader effort to ensure that only legitimate businesses operate within the GST framework.
  • Legal Action: Those responsible for GST fraud, including the masterminds behind such schemes, may face severe legal consequences. This could include the seizure of assets, prosecution under relevant laws, and other penalties as prescribed by the GST Act.
  • Advanced Data Analytics and Risk Assessment: The Central Board of Indirect Taxes and Customs is leveraging advanced data analytics and risk assessment tools to identify potentially fraudulent GST Identification Number. These technologies allow authorities to analyze patterns, detect anomalies, and flag high-risk registrations for further investigation.
  • By focusing on the individuals and networks orchestrating these fraudulent activities, the CBIC aims to protect the integrity of the GST system and ensure a fair and transparent business environment. This proactive approach is expected to deter tax evasion and contribute to stronger compliance across the country.

The second Special All-India Drive may be launched by all Central and State Tax administrations from 16th August 2024 to 15th October 2024 to detect suspicious/ fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue. Let’s join hands in making this campaign a success and contribute to a stronger, more transparent economy!

identify & cancel fake or bogus GST registration

Mandatory Biometric GST Verification at GST Service Centers

  • Biometric GST Verification at GST Service Centers keeps bogus applicants away,  Goods and Services Tax Dept requirement for biometric-based Aadhaar authentication for taxpayers applying for new Goods and Services Tax registrations. This is particularly applicable to those who opt for Aadhaar authentication during their registration process and are flagged by the common portal based on data analysis and risk parameters.
  • The Goods and Services Taxpayers must visit designated facilitation centers appointed by Commissioner to complete the biometric authentication process. At these centers, the applicant’s biometrics and photographs will be collected, and original documents will be verified. This measure, initially introduced as a pilot in select states, is now being implemented more widely to strengthen the registration process and ensure the authenticity of applicants.
  • This approach aims to curb fraudulent registrations and enhance the security and reliability of the Goods and Services Tax system,

CBIC Guidelines for GST Registration : (Instruction No. 03/2025-GST dated 17.04.2025)

Instructions from CBIC for GST Registration

Principal Place of Business (Owned Premises) : Documents Required: Any ONE of:

    • Property Tax Receipt

    • Municipal Khata Copy

    • Electricity Bill

    • Water Bill

    • Any document prescribed under State/local laws

  • Remarks: Only one uploaded document is needed. No physical or extra documents should be demanded.

Principal Place of Business (Rented Premises) : Documents Required: Valid Rent/Lease Agreement and Any ONE ownership proof (as above)

  • Remarks: If agreement is unregistered, then any one ownership document + lessor’s ID proof suffices. and  If registered, ownership proof is enough. morover If electricity/water is in applicant’s name, Rent Agreement is sufficient; no lessor document needed.

Premises Owned by Spouse/Relative : Documents Required:

    • Consent Letter (plain paper) from owner

    • Owner’s ID Proof

    • Any ONE ownership document

  • Remarks: No other documents should be sought.

Shared Premises : Documents Required:

    • Valid Rent/Lease Agreement (if available)

    • Consent Letter

    • Owner’s ID Proof

    • Any ONE ownership proof

  • Remarks: If an agreement is available: same as rented case. and If not: consent letter + owner’s ID + ownership proof is enough. No additional document needed.

Rent Premises (Where Rent/Lease Agreement is NOT Available): Documents Required: Affidavit (non-judicial stamp paper, in front of First-Class Judicial Magistrate/Notary), Utility Bill in applicant’s name

SEZ Units : Documents Required: Certificate/Letter issued by Govt. of India

  • Remarks: No further documents needed.

Partnership Firms : Document: Partnership Deed

  • Remarks: No need for Udyam/MSME/Trade License etc.

Society, Trust, Club, Govt Dept, AOP, BOI, Local Authority, Statutory Body : Documents Required: Registration Certificate / Proof of Constitution

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