After extensive raids conducted in Bhavnagar, Ahmedabad and Gandhidham, by the enforcement wing of the state goods and services tax (SGST) department on Thursday, a fake billing scam of Rs 513 crore was unearthed.
According to SGST department officials, the total taxable value of these bogus bill transactions happened to be Rs 451 crore and taxes of Rs 81 crore were evaded using these fake bills.
SGST officials raided 40 locations for suspected tax evasion in 19 companies, of which 11 were in Bhavnagar.
Fake bills were utilized to evade taxes without actual movement of goods an age-old modus operandi in the GST fake billing scams reported thus far. The department officials have already begun proceedings to cancel these GST registration numbers.
That apart, attempts are also being made to recover the evaded tax amount from the beneficiaries of these fake bills.
Of the 40 locations, raids were conducted at 12 locations of Electrotherm (India) Limited and Hans Ispat Limited.
During these raids, details of unaccounted transactions worth Rs 46.69 crore, including fake bills to evade taxes, were revealed from Electrotherm India Limited, on which no taxes were paid. SGST department officials recovered taxes worth Rs 10 crore on the spot, during the raids. That apart, Integrated Induction Power and Indus University were also raided and tax amount of Rs 92.66 lakh and Rs 8.44 lakh was respectively recovered on the spot from the concerned parties.
Following a tip-off, a truck carrying goods of Electrotherm India Limited was intercepted on Wednesday, where some 50 boxes full of documents pertaining to GST and VAT was found.
Source: timesofindia.com
Also Read: GST Compliance Calendar for the month of February, 2021
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