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₹ 70CR GST SCAM 20 bogus firms’ transactions in Punjab, Hry, HP under lens

September 03, 2019 05:51 AM


20 bogus firms’ transactions in Punjab, Hry, HP under lens
UT To Seek Help Of Excise Dept Of States To Uncover Scam


The UT excise and taxation department has decided to scan the transactions made by 20 bogus firms in neighbouring states, including Punjab, Haryana, Himachal Pradesh and Delhi.

The UT department in its ongoing investigation into the Rs 70 crore tax credit scam will also seek help of excise department of these states’ departments to unearth the large spread scam.

The department has already identified 305 companies, who claimed maximum input tax credit (ITC) under the goods and services tax (GST) in recent years. The department will soon issue notices to these firms as well, asking them to explain their stand. The five bogus dealers, who were primarily involved in the scam, had claimed ITC in huge numbers.

Besides, the UT department has already detected 132 bogus dealers who used fake addresses for registration under GST in the city. The investigation has so far revealed that 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. The department has already cancelled GST registration number of the five bogus dealers slapping a penalty of Rs 17 crore. The list of 15 others was sent to the central excise department for action.

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 the charge of excise and taxation commissioner, on July 26 ordered the penalty.

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 utilized it to offset their GST liabilitie

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