New Delhi, May 6 (KNN) Central and state indirect tax authorities to launch two-month long campaign aimed at eliminating entities that have obtained GST registrations improperly.

Beginning on May 16, the campaign will be against individuals, professionals and firms who created counterfeit invoices, and transferred fraudulent tax credits to other entities without conducting any genuine sales.

A directive to this effect was circulated on Thursday to all field formations with adequate safeguards and elaborate standard operating procedure (SOP) to plug revenue leakages without any outreach, reported Hindustan Times quoting a finance ministry official.

As per reports, GSTN, the company responsible for processing GST returns, plans to employ data analytics to detect fake registrations. The system will use a set of predetermined risk parameters to identify such activity. 

Once identified, both central and state indirect tax administrations will take appropriate action, according to an individual familiar with the matter.

The move comes at a time when the government is keen to widen the tax base and sustain the buoyancy in GST collections.   (KNN Bureau)