GST theft of 1000 Cr rupees in Uttarakhand, firms had done online registration

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In Uttarakhand, a case has been reported of stealing GST and defrauding the government of one thousand crore rupees. When the case came to light, FIRs have been made against the accused firms. It is also important to note that in this case, departmental officers are flouting their responsibility and blaming the flaw of the system.

FIR on 74 firms in Kashipur, Rudrapur

This major case of GST scam has come to light in Udham Singh Nagar district of the state. Two separate FIRs have been conducted by the state tax department in Rudrapur and Kashipur Kotwali. According to the FIR lodged in Rudrapur Kotwali, 40 firms have committed tax evasion of Rs 473 crore. Similarly, according to the Kashipur Kotwali report, 34 firms have hit the government with Rs 529 crore. In this way, this scam is worth more than one thousand crore rupees. Most of the firms are from Kashipur and Rudrapur. However, some firms are also reported to be in the capital, Dehradun.

GST returns not submitted

It is being told that these firms had registered online. All also submitted their papers online and obtained registration. After this, other states started sourcing goods by generating an e-way bill. But the GST amount was not deposited. Departmental officers did not conduct any survey or terrestrial inspection of any firm. As per rules, any firm has to deposit the tax amount at the end of every month based on the details of GSTR-1 and Form GSTR-3B. These fake firms continued to defraud the government and departmental officers could not even get a sense of it. Neither the responsible officers tried to know why the return forms are not coming even after registration and why GST is not being submitted.

Photo of the same person in the registration of several firms

When it got to the state headquarters, the field officers were asked to investigate. Investigations have revealed that online registration has used photographs of the same person as the applicant or operator of the firm on behalf of most firms. However, the papers have been uploaded separately. These firms generated e-way bills for sourcing raw materials for plastic granules and slippers. Some firms also generated e-way bills for calling machines.

Shunned by being responsible for the center

Officers have their own arguments in the GST theft case. RL Verma, Deputy Commissioner (STF), who conducted the FIR, says that the first thing is that these firms have registered themselves with CGST (Central GST Department). It is fully monitored by the Central Department. However, Verma admitted that monitoring work is also done by SGST (State Tax Department). If this was not done, then this matter would not have caught up. Varma says that there are some flaws in the online registration system. People register online by cut-and-paste. Merchants continue to take advantage of this. It is better than registration is done offline as before. Verma said that the important thing, in this case, is that neither any goods have come nor gone in Uttarakhand. Now what is the truth of this matter, it will be revealed only after cyber investigation.

The investigation will be submitted to EOW

There has been a stir in the department after the tax evasion FIR. It is being told that the police are handing over the investigation to the case to the EOW (Economic Offenses Wing). The general police do not have the right to investigate if the amount in crime is more than one crore.

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