While the UT excise and taxation department unearthed input tax credit (ITC) scam worth over Rs 70 crore, the probe conducted by the department revealed that these bogus dealers used fake addresses for registration under goods and services tax (GST) in Chandigarh.
Meanwhile, the department has also cancelled GST registration number of five bogus dealers, who were earlier slapped a penalty of Rs 17 crore. The registration was cancelled with effect from the date of registration of these bogus firms. The list of other 15 was sent to the central excise department for action.
During probe, the department officials checked records of around 440 firms registered in Chandigarh, and it was found that 132 bogus firms were registered under GST in Chandigarh.
A senior official of the UT excise and taxation department said they have started checking of bills and other documents of those firms, who were issued invoices by five scrap dealers, against whom the department has decided to write to the UT police for registration of FIR. The firms who were issued invoices by five scrap dealers, are mainly operating from Industrial Area phases 1 and 2, he added.
The list of bogus dealers was prepared on the basis of reports received from other states. Deputy commissioner Mandip Singh Brar, who is also holding charge of excise and taxation commissioner, on July 26 had ordered a penalty of Rs 17 crore on the five dealers.
The investigation conducted by the UT excise and taxation department so far has revealed these 20 dealers, including five who were penalized, were not doing any sale and purchase in Chandigarh but dealing only in Haryana and other states. These dealers issued invoices to numerous firms/companies without actual supply of goods mentioned and facilitated illicit ITC entitlement.
A large number of people get involved in such a scam. The accused caused a loss to the exchequer by procuring invoices and undertaking fake purchases from non-existent firms and passing on fake ITC to various end-users who utilised it to offset their GST liabilities.
XaTTaX is Best GST Software, Simplify your Financial matters with GST eFiling Software for Return Filing & GST Billing Software in India.
- Automate Invoicing and get Paid Faster
- Integration with all popular accounting software
- Manage your GST and E-WayBill Software anytime anywhere using multiple devices
Get Our GST Software DEMO and E-WAY BILL DEMO for FREE