GST Officials Arrested Proprietor In Tax Credit Fraud

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According to information available from the Bhiwandi commissioner, a man from Andheri was detained on a charge of the proprietor in tax credit fraud in unlawful business operations, such as fraudulent receipts, to claim Rs 9.95 crore in Input Tax Credits (ITC) as director of four enterprises. In this article, we will read the latest news of GST Officials Arrested proprietor in tax credit fraud.

What is Input Tax Credit?

An input tax credit provides taxpayers the opportunity to claim credit for GST Return Filing at the time of purchase.

To claim GST input credit –

  • You must have a tax invoice (or debit note) issued by a licensed dealer.
  • You should have acquired the products/services by now.

Thus, it is a bailable offense unless goods or services are supplied without an invoice or bill or where Input Tax Credit was abused on an invoice, bill or receipt.

CGST Officials Conduct a raid to strengthen GST Regime

Deep Desai, the accused, hailed from Gujarat and resides in Andheri. As of Thursday, he was released from judicial custody and brought before a court. But now, he is detained at the Arthur Road Jail. A woman named Nisha Munjal, 49, who had been arrested earlier in the case, participated in the investigation that led to the arrest of Desai.

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In charge of Shree Steels, who supply mild steel scrap, is Pranav Shankarlal Harsh, a resident of Borivali west. On July 12, 2018, he received his GST Registration.

The CGST officials received information that the accused had invoiced in the name of non-existent firms without supplying goods or services, allowing him to claim input tax credits. A number of invoices on which no products or services were provided are also said to have been passed on for input tax credits.

This led to the Chief GST Officer searching the premises of Shree Steels at Kandivali (West) on March 5. Harsh’s statement on March 10 was recorded as a result of the search for incriminating evidence.

According to a  CGST official, he has taken ITC of Rs.10.59 crore and used Rs.10.93 crore for tax payment, and he has taken unacceptable ITC and got invoices from multiple vendors without supplying goods.

After being charged with violating sections 132 (1)(b) and (c) of the Central Goods and Services Tax Act of 2017, Harsh was arrested and taken into custody.

In conclusion, The administration has initiated a campaign to stop counterfeit invoice extortionists from defrauding the government and creating a spirit of competition with honest taxpayers. This is an approach to demonstrate the department’s dedication to and encouragement for truthful taxpayers to have GST Registration.

Relaxations in GST Return Filing- Update for GST ITC-04 Form

Moreover, If you want any other guidance relating to GST Return Filing, please feel free to talk to our business advisors at 8881-069-069.

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