Cancellation of firms generating fake input tax credit (originators) in the State of Haryana

The Excise and Taxation Department, Government of Haryana Identified a list of 213 suspicious taxpayers in the state who were claiming Input Tax Credit (ITC) in their FORM GSTR-3B but had no input tax credit reflected in their FORM GSTR-2A/FORM GSTR-2B. It was suspected that few of these taxpayers are basically of the nature of fake invoice originators who would take suo-moto input tax credit and then pass fake/non-existent input tax credit to other firms within and outside the State.

Accordingly, a Special Drive was initiated against these taxpayers between 8th Aug 2022 to 16th Aug 2022 to physically verify and cancel registration of fake/nonexistent taxpayers under the provisions of Haryana GST Act, 2017 and rules framed thereunder.

Out of 213 taxpayers, 205 have been physically verified and 114 of which were found fake/non-existent at their principal place of business. The department has suspended registration of 103 of these taxpayers. As a preventive measure ITC worth ?4.84 Cr of these fake taxpayers has been blocked and a total recovery of ?6.70 lakhs has been made from these suspicious taxpayers . Further, physical verification and cancellation of registrations of remaining fake taxpayers is under process.

The Government of Haryana has zero tolerance for fake/non-existent firms and appropriate action under the Act will be taken against people floating such bogus firms and recipients availing input tax credit from these bogus firms.