Economy

GST Officials Detect Tax Evasion Worth Rs.9.7 Crore

The Central Goods and Service Tax (GST) Commissionerate Officials of Coimbatore Region have detected Rs.9.7 crore worth tax evasion and arrested the proprietor in this regard.

The officials initiated the investigation by searches and by giving summon proceedings against M/s.MSK Associated Traders, the issuer of the fake invoices. The officials found that the unit was into invoice trading by issuing invoices without the supply of goods to various taxpayers through intra-state and inter-state trade. The invoices were mostly issued to scrap dealers or traders.

The tax amount in the fake invoice was availed of as Input Tax Credit (ITC) by the traders who received the fake invoices. The recipients of these fake invoices would pay commission without any actual receipt of goods. The invoices were used further for bill trading or tax payment.

Also Read: Government Exposed 115 GST Firms involved in Passing Fake Tax Credits

M.Sampath Kumar, proprietor of M/s.MSK Associated Traders admitted to the GST office and was remanded in judicial custody on 29th October 2020. The approximate tax evasion involved is Rs.9.7 crore. Since the tax evasion involved was more than five crore, it was a non-bailable office, and the proprietor was arrested under the GST Act. The press release stated that further investigation against connected scrap dealers and end-users, who received invoices without actual supply, is under progress.

Nowadays, the government is using data analytics to detect ITC frauds. For example, the GST officials are using technology to find out cases, where a high volume of invoices was raised for sale of goods, but no e-way bills were generated for the same. On the other hand, the government is continuously striving to curb the alleged practices under GST by taking various measures, including mandatory Aadhaar authentication for GST registration.

The government may soon take a decision to extend the applicability of e-invoicing to more taxpayers, which can make the tax system more transparent and can provide real-time information to the department about invoices issued by taxpayers.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in.

Share

Recent Posts

Mutual Funds: SIP Inflows Breach Rs 19,000-Crore Mark for the First Time in February ’24

The systematic investment plan (SIP) contribution in February 2024 has crossed a new milestone. The monthly contribution tipped at Rs…

9 months ago

Income-Tax Return: A Brief Note on Annual Information Statement (AIS)

The Income-Tax (I-T) Department has directed taxpayers to access the Annual Information Statement (AIS) via the e-filing official portal and…

9 months ago

Mutual Funds: All About SIP and Market Fluctuations

Considering the vagaries of the stock market, investors often ponder over reevaluating their strategies. Whether to continue to remain invested…

9 months ago

Income-Tax Saving Through Strategic Life Insurance Planning

Financial planning is beyond just investing wisely to save on taxes; it's also related to protecting oneself and one's loved…

9 months ago

Income-Tax Return: Here’s a Note on Tax-Saving Avenues

A salaried individual earning up to Rs 5-15 lakh as net salary on an annual basis must first take stock…

9 months ago

A Quick Take on Equity-Linked Savings Scheme

Equity-linked savings schemes (ELSS), also referred to as tax-saving schemes, are equity funds that invest a significant portion of their…

9 months ago