The committee, comprising senior central and state tax officers, is looking to further tighten the Goods and Services Tax (GST) registration process and work out other legal measures including necessary law amendment required in the GST Act to curb the menace of fake invoicing.
Also, the provisions related to deemed registration under GST law may be tightened to prevent the misuse of such provisions by fake dealers and the provisions related to the suspension of registration may also be streamlined to make the procedure of suspension and cancellation of registration more efficient and faster, so that such fraud operators can be prevented in time from continuing to pass on fake credit down the chain. The law committee would also consider the impact of the issuances of fake invoices and strict actions/measures required under the GST law to curb these activities and deliberate on measures that are required to plug loopholes in the law that are being exploited by the unscrupulous elements to defraud the exchequer.
It is also learnt that data analytics techniques will be used to identify such taxpayers, who are suspected to be indulging in fraudulent activities and a coordinated action is likely to be taken against such elements by suspending their registration, followed by detailed physical and financial verification by field officers to check the genuineness of their operations before they are allowed to reuse their registration.