Ambala : Central Goods and Services Tax (CGST) has launched major action against large number of institutions evading GST of value more than Rs 68 crores by issuing fake input tax credit (ITC) bills. It was observed that these institutions were passing ITC to the taxpayers from outside the state as well as in the state. A spokesperson of the department said vigilance department has started search for firms cheating the government in false practices and has already identified large number of firms from whom recoveries and the fine is being recovered. Even in ‘Science City’ Ambala Cantt the department has identified large number of renowned business houses involved in sale-purchase of fake bills to earn ITC fakely. There are few firms dealing in scientific goods but found falsely doing transaction in consumer as well as etable goods. He disclosed that in the coming some time, the persons operating the ITC racket will be identified by the department and strict action will be taken against them with recovery of amount, fine and interest thereon.
There are four commissionaries in Haryana state at Panchkula, Gurugram. Rohtak and Faridabad involved in tacing out such firms involved in fake sale-purchase of bills to earn ITC unethically. DC CGST Shikhadeep Kaur Randhawa said that all registration numbers of registered parties are being checked at national level and registration of large number of parties claiming ITC falsely have been cancelled with immediate effect and action for recovery of frauded amount is being taken against them along with amount of interest. She said, in most of the cases the addressed were found false during investigation and stern action is being taken against them. She further added that the department sendingt notices to such establishment found involved in illegal practices under Sections 74, 122 (!) (!!) of 2017 and section 122 (I)(VI). Madam Randhawa said that it was observed that large number of business houses have been playing games of sale-purchase of bills without actual transactions just to grab ITC and in most of the cases e-way fake bills were raised by them.
Principal Commissioner, Central Goods and Services Tax said that in campaign launched by the department against seven bogus parties that issued fake ITC bills which included Bizotic Developers, Golden Traders, ARL Trading Company, Devi Trading Company, Badri Enterprises, Kumar Traders and Singh Brothers in which tax evasion of Rs 68.04 crore was exposed from them. They were obtaining ITC and passing ITC to tax payers of other states without any kind of goods by these bogus institutions. According to information, Input tax credit of any goods is given only to the institution registered in GST. Credit is not given to a person who is not registered in GST. Credit is given only to the goods used for the business. Goods used for personal use is not be given credit. If any goods are used for both personal and business purposes, then only the part that comes in the business of goods is liable for exemption. In this case, the information of tax charged, total value of supplied goods and services, details of goods and services, inter-state sales should be included with the bill for claiming input tax credit. Information also reveals that in the financial year 2021-22 by the department GST evasion of 600 crores was caught in Haryana state. It is being told that more than 200 tax evaders were caught in the last five and a half years.
