Fake GST Firms racket busted, goods worth Rs 40 lakh seized

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State Taxes Department has busted a fake GST Firms racket operating simultaneously in New Delhi and Jammu and Kashmir. “On the basis of specific inputs the enforcement team of State Taxes Department, Jammu detained vehicle carrying goods worth Rs 40 lakh to the state,” an official statement said. “On physical inspection of the vehicle, the documents produced by the transporters were put to online scrutiny. It was found that the racket is operational since April 2018 and is deeply involved in the issuance of fake GST invoices along with fake e-way bills,” said the statement.

 It said that the principal racket master operated under the name and style of Mahima Enterprises, AR Electricals and Mahima Garments Export under the proprietorship of Rajeev Bhatia from Delhi and in connivance with fake GST number holders viz Mahima Trade Mart, PK Pal Traders, Santosh Traders, Kathua, Ravish Traders, Kathua and Khan Enterprises and were trading goods illegally for quite some time into the state from Delhi. “The fake racket firms in league with Blue Dot Couriers have till date successfully evaded the GST using their ulterior practices. The State Taxes Department has shared the information of the racket with Principal Director General, Central Excise (Intelligence), New Delhi requesting a thorough enquiry on all the transactions/actions of the above-mentioned fake GST firms,” the statement added.

Additional Commissioner, State Taxes (Administration & Enforcement), Jammu Mohammad Shahid Saleem said that on scrutiny of all the firms it was found that aforementioned are fake and have not filed GST returns from October onwards while nil returns have been filed till October 2018 despite having traded goods worth approximately Rs 15 crore. He said that the address locations of all fake GST firms located at Jammu and Kathua were checked physically and it was found that none of these firms are in existence at the given addresses and some other businessmen/enterprises were found active at the given sites/addresses. “The firms also operate from an address being used by P.K. Pal Traders, a fake firm under scrutiny in the case. He mentioned that this case is first of its kind busted by the State Taxes Department, Jammu and it will be taken to the logical conclusion as per GST law soon,” he added.

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