LM NEWS 24
LM NEWS 24

931 GST Frauds Identified Through Data Analytics

The Department of Revenue has identified 931 cases of fraudulent Goods and Services Tax (GST) refund claims and tasked the GST Data Analytics Wing to scrutinise all past and pending cases filed across the country for inverted duty structure, sources said on Monday.

Refunds of over Rs 28,000 crore are estimated to have been filed by over 27,000 taxpayers so far on account of inverted duty structure in the current financial year 2019-20.

Officials said these identified taxpayers who purchased goods from tax-evading non-filers will face verification and scrutiny. This is being reviewed and monitored on a weekly basis by Revenue Secretary Ajay Bhushan Pandey.

To curb input tax credit (ITC) frauds, data analytics is being done on all refunds since 2017, keeping an eye on the modus operandi of unscrupulous refund claimants, fly-by-night operators and shell business entities.

GST formations booked 6,641 cases involving 7,164 entities till November last year and recovered about Rs 1,057 crore. The maximum numbers of cases for ITC frauds were booked in Kolkata zone followed by New Delhi, Jaipur and Panchkula in Haryana.

A recently-detected fraud by central tax authorities in New Delhi involving GST refund for inverted duty structure was deliberated at the second national conference on GST last week.

Sources said investigators in the national capital have busted through data analytics a significant fraud case, where fraudsters had created a network of over 500 entities comprising of fake billers, intermediary dealers, distributors and bogus manufacturers of hawai chappals for availing and encashing fake ITC credits.

The bogus manufacturers created in Uttarakhand were making supplies to other fictitious entities and retailers in Gujarat, Maharashtra and Tamil Nadu. The raw material for the chappals, known as EVA compound, was charged at 18 per cent duty whereas chappals are chargeable to GST of 5 per cent.

Resultantly, the law allows manufacturers to claim refunds of the inverted duty structure in cash.

In Surat, preliminary investigations showed that 19 firms fraudulently claimed ITC to the tune of Rs 55 crore against fake invoices valued at Rs 679 crore.

During a search at the premises of Satyam Impex and Aatif Fashion, it was found that 17 other firms were registered with GST by misusing the identities and documents of daily wagers and casual workers.

(ANI)

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.

Privacy Settings saved!
Privacy Settings

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. Control your personal Cookie Services here.

These cookies are essential in order to enable you to move around the website and use its features. Without these cookies basic services cannot be provided.

Cookie generated by applications based on the PHP language. This is a general purpose identifier used to maintain user session variables. It is normally a random generated number, how it is used can be specific to the site, but a good example is maintaining a logged-in status for a user between pages.
  • PHPSESSID

Used on sites built with Wordpress. Tests whether or not the browser has cookies enabled
  • wordpress_test_cookie

In order to use this website we use the following technically required cookies
  • wordpress_test_cookie
  • wordpress_logged_in_
  • wordpress_sec

Decline all Services
Accept all Services
0
Would love your thoughts, please comment.x
()
x