Directorate General of GST Intelligence (DGGI) unearths Rs 338 cr fake invoicing racket in Assam

 



The Directorate General of GST Intelligence (DGGI) has unearthed a Rs 338 crore fake invoicing racket in which fake input tax credit involving Rs 28.97 crore of Goods and Services Tax was generated, officials said on Thursday.

According to the officials, two accused persons -- a trader and a tax consultant -- were arrested on Tuesday for violation of different provisions of the GST Act. They were produced before the Chief Judicial Magistrate's court, which remanded them to 14 days' judicial custody.

Additional Director General (GST Intelligence, Guwahati Zonal Unit), L.S. Gangte, said that the duo was arrested as they were involved in a racket of receiving and issuing fake invoices for coal.

The firm of a trader showed purchase of coal from Gujarat, Punjab and Delhi to his Guwahati unit to avail input tax credit (ITC). The unit subsequently issued invoices to cement and coke manufacturers, and other traders in the northeast without the supply of any goods.

"The fake invoices and bills for coal, issued by the trader, were used as cover documents for the coal procured clandestinely and to pass on irregular ITC," the official said.

According to Gangte, the trader of the private organisation created two fake entities by the same name of his organisation in Ludhiana and Gandhidham in Gujarat and showed business transactions between these firms on paper without any supply of goods.

"This huge racket of fake invoicing involved other firms in Delhi, Punjab and Gujarat, which were found to be non-existing. A Guwahati-based tax consultant colluded with the trader and helped in the commission of the fraud," Gangte said.

The official said the tax consultant was instrumental in dealing with the transactions on behalf of the trader and maintained the accounts and books of accounts, prepared financial accounts and got the accounts audited, besides filing GST returns pertaining to traders in Guwahati, Gujarat and Ludhiana which turned out to be non-existent entities during a recent search.

Comments

Post a Comment

Popular posts from this blog

Centre appeals against ruling on levy of GST on maintenance charges to resident welfare associations

Image
  The Centre has preferred a writ appeal before the Madras High Court against a single judge's order that flat or villa owners paying more than ₹7,500 a month towards maintenance charges to their residents’ welfare associations must pay Goods and Services Tax (GST) at the rate of 18% only for the amount exceeding ₹7,500 and not for the entire monthly contribution. Justices T.S. Sivagnanam and Sathi Kumar Sukumara Kurup on Wednesday allowed an application filed by the Centre to dispense with production of a certified copy of the judgment passed by Justice Anita Sumanth recently and directed the Registry to list the appeal for admission in the usual course. Justice Sumanth had in July this year quashed an order passed by the Authority for Advance Ruling (AAR) on June 21, 2019 as well as a consequent circular issued by the Department of Revenue under the Union Finance Ministry on July 22, 2019 since both of them had insisted upon collecting GST for entire monthly contribution. The jud...
Read more

Seven key things to know before filing income tax return (ITR) for FY21

Image
  The last date to file income tax return for the financial year 2020-21 has been extended to September 30, 2021. Although there is more than two months left for the deadline to end, it is always recommended to complete the task as soon as possible and not to wait for the last minute. Worth mentioning here is that the income tax department last month launched a new e-filing portal (www.incometax.gov.in) to speed up the processing of tax returns. The I-T department will soon launch a mobile application, having all the features of the new portal. This year taxpayers have to take care of the following changes in the ITR filing process. 1) A new utility named JSON has been launched for filing tax return forms for FY21. At present, only three forms, ITR 1, 2 and 4 have been released. These new forms will import pre-fill data such as personal details, salary income, dividend income, interest income, capital gains and all the information available in Form 26AS. 2) Taxpayers will have the ...
Read more

Income Tax Dept detects ₹350 cr unaccounted cash receipts after raid in Rajkot

Image
  The Income Tax Department carried out a search and seizure operation on a real estate group based in Gujarat's Rajkot and found unaccounted cash receipts in various projects of approximately ₹350 crore, the Finance Ministry said on Friday. The group is among Gujarat’s prominent real estate builders and developers and is actively engaged in real estate, construction and land trading businesses in and around Rajkot. More than 40 premises were covered in the search operation. During the course of operation, many incriminating documents and digital evidences were seized indicating involvement of the group in unaccounted transactions. The IT sleuths found substantial evidence of transactions outside the regular books of accounts, unaccounted cash expenses, cash advances received and interest paid in cash. Evidence of on-money payments in real estate projects-flats, shops and land deals has also been found. Total unaccounted cash receipts in various projects of approximately ₹350 crore...
Read more