First Kol GST fraud arrests in Rs 40cr 'scam'

KOLKATA: The Directorate General of GST Intelligence (DGGI) has arrested two persons, marking the first GST fraud-related arrests from the city for the reason that new tax regime rolled out closing July. S Okay Bhuwalka and Neeraj Jain are in judicial custody for GST evasion to the song of more than Rs 40 crore, however assets instructed that the true magnitude of the fraud could be well over Rs 100 crore.
According to assets in the DGGI, the enforcement arm for GST-related frauds and irregularities, the GST evasion was performed by way of growing 10-15 "dummy companies" with the same registered central Kolkata address.

A GST expert mentioned a dummy company allegedly floated by way of the duo used to provide some subject matter to an actual operat-ing company at a worth that integrated the material's GST. Th-is was handiest on paper, without a actual transaction going down.


Company used input tax credit to cheat govt

The purchasing company then used to show the GST paid as “input tax credit”. According to GST rules, this input tax credit, accrued to a company, can be utilized to pay taxes. Through the fake transactions, the purchasing company then used to pay GST the usage of their input tax credit, thus defrauding the government exchequer.


“We are conducting additional investigations, not ruling out the life of many extra dummy companies that issued fake invoices,” mentioned a supply. “Lot of documents were seized. We shall query the accused additional.”


Alawyer at the Sealdah Civil & Criminal Court, the place the accused were produced, mentioned the duo had claimed that they weren't administrators of any of the corporations involved in the racket, and have been thus not liable for GST evasion.
First Kol GST fraud arrests in Rs 40cr 'scam' First Kol GST fraud arrests in Rs 40cr 'scam' Reviewed by kailash soni on May 15, 2018 Rating: 5
Powered by Blogger.