News By/Courtesy: Manishi Srivastava | 21 Mar 2019 0:06am IST

HIGHLIGHTS

  • An alleged tax fraud of Rs 224 crore was discovered by the officials of the Central GST and also detected fake invoices worth Rs 1,289 crore by a group of eight companies.
  • Rs. 19.75 crore was recovered from a suspect involved in the racket was also arrested, as press release from the Hyderabad Central GST Commissionerate stated.
  • The companies have been generating fake invoices without actual supply of TMT bars, MS bars, MS flat products among others.

An alleged tax fraud of Rs 224 crore was discovered by the officials of the Central GST and also detected fake invoices worth Rs 1,289 crore by a group of eight companies involved in the trade of iron and steel products. Rs. 19.75 crore was recovered from a suspect involved in the racket was also arrested, as press release from the Hyderabad Central GST Commissionerate stated. Simultaneous searches were conducted at different premises including both residential as well as business of the companies and several documents were recovered. The companies have been generating fake invoices without actual supply of TMT bars, MS bars, MS flat products among others, and were passing on the input tax credit to other tax payers within the same group, besides some other taxpayers since July, 2017, it said.  The fake invoices generated by them involved about Rs 1,289 crore of value and input tax credit of about Rs 224 crore. “Many of the Directors/Partners/Proprietors of these firms/companies are common, and five out of these taxpayers are operating from the same address” the release said. These companies to inflate their turnover were involved in circular fake trading, in addition to supplying fake invoices and e-way bills to some others, as stated by GST officials. By prima facie investigation, the above method is adopted to defraud the Banks for claiming ineligible credit facilities or Letters of Credit (LCs), without any collateral securities.

Section Editor: Priyanshu Gupta | 21 Mar 2019 0:11am IST


Tags : #India#GST#TaxFraud

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