Tax evasion worth Rs 96 crore by fake firms detected in Bihar

Abhay Singh | TNN | Updated: Jun 6, 2020, 10:38 IST

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PATNA: The intelligence wing of the commercial taxes department (CTD) has unearthed tax evasion worth Rs 96 crore by 25 fake firms operating from various parts of the state. The next step would be initiating penal action against them, department sources said on Friday.
The CTD intelligence wing had dedicated itself to unearthing such firms during the lockdown, the sources said, adding that it was an exercise undertaken to zero in on the firms which indulged in illegal activities and tax evasion. The process would continue and the profiling of such firms would be a continuous exercise.
The CTD sources also revealed that legal and administrative proceedings would be started for initiating penal action against the 25 fake firms which indulged in interstate sales and purchase of goods on a big scale — with their merchandize valued at Rs816 crore — by generating e-way bills.
The department sources also said even as they generated e-way bills, they did not file goods and services tax (GST) returns. The probe into their activities revealed that they had also violated the GST rules and norms.
Further, these 25 firms did interstate sales and purchase in items like iron and steel, coal and bitumen. They were not located to anyone city or town in the state, but operated from all across Bihar, sources said, adding they also indulged in bogus bill trading. Further, these firms existed only on paper.
“The intelligence wing of the state CTD utilized the lockdown period in tracing their identities and tracking their illegal activities by using the Data Analytics and Human Intelligence methods,” a source said.
Now that the lockdown has been lifted, penal action would certainly be initiated against them. The sources maintained that the profiling of fake firms and their shady activities would help in checking tax evasions, besides creating suitable business and trade atmosphere in which honest traders would be able to conduct their activities honestly abiding by the GST norms.