63 Taxpayers Missing Books, Rs.7,600 Crore GST Scam Uncovered
A GST investigation has reportedly revealed that books of account were unavailable for 63 taxpayers allegedly connected with suspicious transactions. Although their GST registrations appeared inactive or “dead” on paper, the entities are said to have recorded business transactions aggregating nearly Rs.7,600 crore.
The absence of books, invoices and supporting records has raised serious concerns that the entities may have been used to circulate invoices, claim or pass on irregular input tax credit, and conceal the real beneficiaries behind the transaction chain. Authorities are reportedly examining GST returns, e-way bills, bank accounts, electronic records and links among the taxpayers.
However, the reported turnover of Rs.7,600 crore should not automatically be treated as the amount of tax evasion. The final tax loss, wrongful ITC, interest and penalty can be determined only after investigation and adjudication under the GST law.
The case highlights the risks associated with shell entities and inactive registrations remaining within supply chains. Genuine businesses should conduct vendor due diligence, periodically verify GSTIN status, reconcile GSTR-2B with purchase records, maintain proof of receipt and payment, and preserve complete books of account.
Any mismatch or doubtful supplier should be investigated immediately to protect input tax credit and avoid future litigation.
