GST Scam in Madhya Pradesh:Indore (Naiduniya Representative). Anti evasion wing of Commercial Tax Department (State GST) has exposed the scam of 315 crores in GST. Fake bills were deducted first by forming bogus companies at the addresses of Indore and Neemuch. Through these bills, business was shown on paper only. Input tax credit was obtained from bogus bills and passed on to other companies. A total of five companies have come under the grip of the Commercial Tax Department. Of these, two are from Neemuch and three from Indore. However, the scammers are still away from the grip of the department.
Surveillance: Anti-Evasion Bureau came to know about the exploits of the companies
After assuming office a few months ago, the state’s Commercial Tax Commissioner Lokesh Jatav had instructed to monitor such companies by doing data analytics, which have less time to establish but their turnover is very high. Anti-Evasion Bureau Indore-A has identified five such companies. When the team officials checked the addresses of two companies of Indore’s Shrinath Soya Exim Corporate, Shri Vaibhav Laxmi Industries, JS Bhatia Enterprises and Neemuch, Aggarwal Organic, Agarwal Overseas, the business was not found there.
And then check : Forged rent deed along with application for registration of company
According to Manoj Choubey, Joint Commissioner in-charge of Anti-Evagen Wing, the registration of Shrinath Soya Exim Corporate Firm was found in the name of an auto driver Sachin Pateria. Forged rent deed was attached with the application for registration of the company. The person who was signed as the landlord in the rent deed, has also died many years ago. Similarly Ajay Parmar, the proprietor of M/s Shri Vaibhav Laxmi Industries, was not at the place of business. All other companies were also formed by grabbing the documents of laborers and similar people from somewhere. Now ITC reversal action is being taken by the department against the firms which have been given the benefit of ITC by these bogus firms in Madhya Pradesh and outside. Several dozen firms that have obtained fake ITC may now come under the purview of the department’s action.
GST system: such is the system of tax
If the tax is deposited once on any item and its business is being processed further or in the same form, then the credit of the tax deposited in the past is available. This is called Input Tax Credit i.e. ITC.
Such a scam: Companies manipulated bills
In the latest scam, fake bills were issued without selling and buying any item. Those bills showed depositing of tax. The firms issuing the bills were also made bogus. These bills were passed on to other companies. Further firms and companies got its ITC by showing that the tax was paid through fake bills.
Action: Thousands of crores of business in five firms
When the Anti Evasion Wing of the Commercial Tax Department caught five such bogus firms, it was found that ITC of 315 crores was being forwarded to other companies by showing thousands of crores of business through bills.
Posted By: Prashant Pandey