The conference focused on sector-specific enforcement challenges, emerging evasion tactics, and innovative strategies to strengthen enforcement efforts.
The second edition of the National Conference of Enforcement Chiefs from State and Central GST Formations took place in New Delhi on August 20th, 2024. The event was chaired by Shri Sanjay Malhotra, Secretary of the Department of Revenue under the Ministry of Finance. The conference focused on a crucial special drive aimed at identifying and eliminating fake GST registrations.
Attendees included senior officials from the Department of Revenue, CBIC, State Commissioners of Commercial Tax (CCT), and GST Enforcement Chiefs. Additionally, officers from the Central Economic Intelligence Bureau (CEIB), Directorate of Enforcement (ED), Central Board of Direct Taxes (CBDT), Directorate of Revenue Intelligence (DRI), Financial Intelligence Unit (FIU-IND), and GST Network (GSTN) were present.
During his address, Revenue Secretary Sanjay Malhotra highlighted the significance of balancing stringent enforcement actions with ease of doing business. He urged GST formations across both state and central levels to zero in on fake registrations and uncover the masterminds behind fraudulent Input Tax Credit (ITC) claims. He emphasized that these efforts are key to ensuring compliance, and recent changes like the introduction of GSTR-1A in the GST return system will help in curbing evasion more effectively.
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Shri Sanjay Agarwal, Chairman of the Central Board of Indirect Taxes and Customs (CBIC), underscored the need for enforcement agencies to stay ahead of evaders. He emphasized that enforcement units should target real GST evasion rather than interpretative or industry-wide practices.
Vivek Agarwal, Additional Secretary of Revenue, expressed optimism that participants would gain valuable insights through the day’s agenda. The conference focused on sector-specific enforcement challenges, emerging evasion tactics, and innovative strategies to strengthen enforcement efforts.
The conference reviewed the action plan set during the first edition, held in March 2024, and progress reports were presented. Officials discussed the ongoing two-month special drive launched on August 16th, 2024, aimed at targeting nearly 59,000 potentially fake firms identified for verification. GSTN officials provided updates on various technological initiatives designed to combat tax evasion while promoting business facilitation.
The Director General of GST Intelligence (DGGI) reported that since 2020, over Rs. 1.20 lakh crore in fake ITC evasion had been detected. Emphasizing the success of ongoing efforts, he highlighted the apprehension of 170 masterminds behind these schemes. The conference also reviewed best practices to ensure uniformity in enforcement actions while maintaining ease of business.
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Maharashtra State GST demonstrated the implementation of their GST Enforcement Management System (GEMS), which enhances transparency and accelerates tax recovery efforts. Presentations from zonal DGGI/CBIC units covered various case studies, addressing misuse in sectors like fintech, APMC accounts, cryptos, and NFTs.
Enforcement officials from different states presented findings from specific sectors. For example, Gujarat’s Chief Commissioner Tax (CCT) highlighted evasion in manpower supply services, while officials from West Bengal and Karnataka shared insights into real estate fraud and inter-departmental data sharing. Tamil Nadu’s innovative street survey and friendly welcome letter process for detecting fake registrants were also commended.
Participants called for the creation of a national enforcement action register to improve real-time information sharing across central and state units. Revenue Secretary Malhotra stressed the importance of staying connected with the trade sector to foster proactive compliance while reducing intrusive enforcement actions.
Overall, the conference provided a platform for valuable knowledge exchange, facilitating enhanced coordination among GST enforcement authorities across India.
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