Fake GST Registration: In a determined move to enhance revenue collection and meet the ambitious target of Rs 51,000 crore for the current financial year, the Telangana Commercial Taxes Department has initiated a strong crackdown on fake GST registrations and fraudulent invoicing practices.
During a recent high-level review meeting, officials announced the implementation of a new monitoring dashboard aimed at increasing transparency and accountability. The state recorded a 12% growth in GST collections in April 2025 compared to the same month last year, encouraging authorities to further strengthen enforcement mechanisms.
Senior officials emphasized their commitment to eliminating tax leakages and irregularities. “This remarkable growth motivates us to intensify our efforts in safeguarding state revenues,” they said.
As part of the new strategy, field officers have been instructed to monitor revenue leakages on a daily basis—a process that was not consistently enforced earlier. With the support of the enhanced dashboard, authorities aim to pursue cases against tax offenders more aggressively.
Officials highlighted that fake GST registrations and bogus invoices may have benefited a few entities, but they have resulted in substantial revenue losses for the state government. The new system will empower officers to regularly report and act on field activities in real time.
To ensure effective implementation, specialized training sessions have been conducted for officers to improve their skills in auditing, identifying discrepancies, and issuing notices. A key point of discussion was the difference in notice response timelines—under the previous VAT system, firms had 30 days to appeal; under GST, this has been extended to three months, requiring officers to exercise heightened diligence.
Additionally, the department is looking to tap into professional tax as a significant revenue stream. Individual professionals liable for income tax must pay professional tax ranging from Rs 20 to Rs 120, while firms are required to pay up to Rs 2,500 under current regulations. Strengthening the collection of professional tax is expected to bring in additional income for the state.
With these measures in place, Telangana is poised to make significant strides in enhancing GST compliance and maximizing tax revenues.