GST Intelligence team’s crackdown on Ludhiana firm

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In a crackdown on tax evasion in the state, a team of GST Intelligence, Chandigarh, conducted a survey at a city based businessman’s factory at Bahadurke Road and his residence in Shivpuri. The teams confiscated a large number of documents, loose papers and also questioned the company staff. According to sources, the businessman is into gold trading as well as garment manufacturing. While the department officials refused to confirm the action, sources revealed that action was taken on the suspicion of forging input tax credit. However, exact details about the offence, if any, will be clear once the probe is over.

The development comes two weeks after Ludhiana-based zonal unit of Directorate General of GST Intelligence (DGGI) arrested a Delhi businessman for evading GST worth crores. In this case, the arrested businessman was accused of running ghost companies and forging invoices worth nearly Rs 600 crore to evade GST and passing input tax credit (ITC) fraudulently. In addition to this, he had opened multiple bank accounts in which huge payments were credited and laundered the same day, but no supply of any goods or services was made and in order to show these transactions as legitimate, GST was shown to have been paid entirely through bogus ITC and not even a single rupee of tax payment was made in cash.

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