A nationwide crackdown by the Goods and Services Tax authorities uncovered tax evasion to the tune of ₹30,000 crore, allegedly carried out via stolen identities including as many as 18,000 Permanent Account Number (PAN) and Aadhaar cards, people familiar with the development said.
The identities of beneficiaries of PM Kisan and other social security schemes were allegedly used to operate 4,000 shell companies and 16,000 fake GST registrations.
The GST authorities launched the two-month anti-evasion exercise on May 16 and about 10,000 fake registrations were detected in the first week.
The GST authorities have roped in other agencies including the Income Tax department, Enforcement Directorate and the ministry of corporate affairs, which are initiating separate actions against the individuals and firms involved in view of the organised nature evasion spread across 16 states.
Tax authorities have carried out searches at multiple locations and have arrested seven persons in this connection.
“It was a huge organised racket operating in 16 states creating shell companies and fake GST registration by stealing data from PM Kisan, Rural employment scheme and other schemes,” a senior official told ET.
These shell companies were used to generate fake bills, which were then sold to various companies to claim input tax credit. Three separate teams worked in a multi-state operation to create shell companies from stolen identities, generate fake e-way bills or fake invoices and supply invoices to companies that required them.
The official said in some cases people had been made directors of the companies without their knowledge, which came to light after they received tax notices at their address. Authorities will soon send notices to companies that availed these fake invoices to claim input tax credit.
The Directorate General of GST Intelligence (DGGI) has also recovered tax evasion in some cases, another official said.
Gujarat state GST officials had first detected a fake invoice racket using stolen IDs at Bhavnagar and Surat following which a nationwide drive was launched. Similar operations were subsequently conducted in Uttar Pradesh, Madhya Pradesh, Rajasthan, Delhi, Maharashtra, Kerala, Punjab and Haryana.
Source from: https://economictimes.indiatimes.com/news/economy/finance/gst-evasion-of-30000-crore-unearthed/articleshow/100973955.cms
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Coverage of the Course :
- What is the Eligibility and Condition for claiming ITC- Section 16 with practical scenarios and examples
- Requirement and reversal of ITC (Rule 37)
- Interplay of Valuation – GST ITC
- Schedule I vs Rule 37 Comparative Study
- Rules and Provision for Offset of ITC – Case Study
- Concept of Claim – Reversal – Reclaim
- Clarification on Non Filing of GSTR-1 and GSTR 3B
- Other provision of Section 17 for reversal of common ITC and reversal as per Rule 42/43 for Input, Input Service & Capital Goods
- Exclusions in value of exempt supplies for the purpose of reversal of common credit ITC as per rule 42 and 43
- Exclusion of interest income and other exempt services from aggregate value of exempt supplies for reversal of common ITC as per rule 42 and 43
- Special Provision for Banking, Financial Institutions, NBFC’s
- Blocking of ITC (Rule 86A)
- Restrictions on use of amount available in electronic credit ledger (Rule 86B)
- Order of utilization of input tax credit (Rule 88A)
- Manner of calculating interest on delayed payment of tax (Rule 88B)
- Availability of credit in special circumstances
- ITC on opening stock of inputs at the time of registration
- ITC on stock of inputs available to person taking voluntary registration
- ITC on opening stock of inputs and capital goods available on opting out of composition scheme
- ITC on stock of inputs and capital goods when exempted goods or services become taxable
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- Transfer of ITC in case of sale, merger, demerger, amalgamation, etc.
- Transfer of ITC on obtaining separate registration for multiple places of business within a state or UT
- Removal of capital goods or plant and machinery
- Taking ITC in respect of inputs and capital goods sent for job-work
- Manner of distribution of credit by Input Service Distributor
- Manner of recovery of credit distributed in excess
- Apportionment of Credit
- Meaning of Taxable & Exempt Supply
- Credit used exclusively for Taxable supply / exempt supply
- Common Credit
- Supplies for personal consumption etc.
- How to apportion the credit
- Blockage of Credit in respect of
- Motor Vehicles, Vessels and Aircraft; their servicing repair & maintenance.
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- Membership of Club, Health and Fitness Centre
- Goods & Services provided to employees
- Travel benefits to employee
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- Credit on free gifts, samples, goods lost, stolen or destroyed etc.
- ITC & Tax paid under Section 74, 129 and 130
- Discussion on various important judgments on ITC
- How to prove genuineness of transactions to avail GST IT
- ITC can be claimed during revocation of cancelled GST registration
- Claiming Time Barred ITC for the period of Cancellation
- ITC availability on vouchers and subscription packages
- Constitutional validity of Section 16(2)(c) challenged in various cases
- Constitutional validity of Section 16(4) challenged in various cases
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- Open House: Question and Answer
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