The Directorate General of Goods and Services Tax (GST) has taken major action in the matter of tax evasion and fake bills. More than 350 cases have been registered against 1,180 companies across the country in the last four days of action. At the same time, 25 people have also been arrested in this case. At present, the process of GST registration has been further tightened in view of fake bills and hawala racket.
According to the statement issued by the Directorate General, these arrests were for issuing fake bills in the garbage and non-ferrous metals debris, readymade garments, agricultural products, milk products, mobiles, human labor supply services, advertisements, gold, silver, and construction services. Has gone. The people and institutions involved in this case are accused of GST theft, income tax evasion, and money laundering.
The Directorate General took this action from the second week of November. These operations are in Delhi, Bangalore, Mumbai, Ludhiana, Chennai, Nagpur, Kolkata, Gurugram, Ahmedabad, Surat, Vadodara, Bhilai, Jodhpur, Hyderabad, Mathura, Raipur, Visakhapatnam, Jamshedpur, Patna, Imphal, Meerut, Guwahati, Pune, Siliguri, Bhopal, Bhubaneswar, and many other cities. Companies make fake bills to get an input tax credit (ITC).
According to sources, the countrywide campaign will continue against those who steal GST and those who commit frauds of ITC. A few more arrests may be made in the coming days. The Enforcement Directorate will also conduct an investigation against the beneficiaries of this fraud under money laundering.
Businessmen have to give details of their cleanliness before registration
Business owners or promoters who do not have records of income tax payments will require physical and financial verification before granting GST registration to their companies. It will also be examined whether any action has been taken against them under GST laws, Income Tax Act, and the Money Laundering Act. Such companies issuing bogus bills and such traffickers can be detained under the Prevention of Foreign Exchange and Smuggling Activities Act.
This is how sport happens
Fake companies make fake bills. Fake e-way bills are also prepared without sending any item and after that ITC is claimed from the government. Under GST, there is a refund of tax paid on raw materials and other purchases.