GST : Fraudsters gets devised ways to bypass the single taxation system

With Central Government just celebrated one hear of enforcing Goods and Services Tax (GST) in the country, fraudsters have devised ways to bypass the single taxation system, the top government authorities disclosed.

According to a statement released here on Thursday morning, Director General of GST Intelligence claimed to have unearthed tax evasion to the tune of over Rs 60 crores in Kanpur. Two people, Manoj Kumar Jain and Rajesh Tayal, owners and promoters of various firms and companies in Kanpur have been arrested for reportedly being involved in the fraud during the past one year.

Additional Director General of DGGI, Rajendra Singh, of the Lucknow unit, led the operation. Singh said that, during assessment, it was found that the two were involved in tax evasion to the tune of around Rs 60 crores during the past one year by issuing bogus invoices of Rs 400 crores to various firms and companies. During the investigation, it was found that these persons, through various firms, issued bogus bills for supply of cement, bitumen, raw hides, plastics, garments, metals and others items. In reality, there was no supply of any goods.

According to the alleged modus operandi, the fraudsters showed that they had filed GST return by payment through income tax credit on goods which were never purchased by them. “The fraudsters connived with transporters to get bogus bilty/consignment note to show movement of goods on paper and created fake E-way Bills. For bogus supply of goods, they took payments through Real Time Gross Settlement and after deducting their commission they used to return the rest of the cash to the client,” Singh said. Investigation, he said, was still underway and did not rule out the alleged involvement of more people in the scam.