GST evasion: Rs 15 cr GST fraud unearthed

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The Central Goods and Services Tax (CGST) Division here has busted a racket of fake input tax credit involving evasion of around Rs 15 crore.

Rohtak CGST Commissioner VM Jain said they had conducted an inquiry on the basis of data analysis of information declared by M/s HS Trading Company in Hisar. He said it was found during verification that the firm did not exist at the given address.

“The firm was registered on the name of an unconnected person with identity proofs, including Aadhaar and PAN, and a fake rent agreement. When this person was contacted, he told us that he resided in Delhi and had never applied for GST registration,” he added.

Assistant Commissioner Sachin Ahlawat said it was noticed during further analysis that goods movement having input tax credit of more than Rs 15 crore was shown this month with taxable value of more than Rs 85 crore and fraudulent credit had been passed onto taxpayers, mostly in Punjab.

He said the input tax credit of this firm had been shown from M/s Tulsi Trading Company, based in Patna. He said the transactions of this firm were suspicious due to vast difference in input and output tax credit. He said to facilitate passing on of credit, it had been registered in Punjab.

A CGST official pointed out that M/s HS Trading Company was registered for child garment business. “Invoices of iron scrap and ingot are being issued. M/s MS Trading Company at Mandi Gobindgarh is registered on the same PAN,” said the official.

“The nexus is spread over Haryana, Punjab and Bihar. Divisions in Punjab and Bihar were being contacted to unearth the matter.”

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