Help Desk -
9717405332, 9599714297, 9810335381
Email
Password

Mumbai steel players under lens over input tax credit frauds

Steel News - Published on Tue, 12 Mar 2019

Image Source: A2Z Taxcorp LLP
ET reported that a whopping 11 of the 13 cases registered by the Mumbai zone of CGST in the last one year for availing fraudulent input tax credit via fake invoices are linked to firms dealing in the iron and steel industry. In all 20 individuals have been arrested in these cases for showing supply of goods worth INR 10,000 crore and claiming GST payment of INR 1,971 crore. Sungita Sharma, chief commissioner, CGSTMumbai Zone, told ET “We are using intelligence inputs and data analytics with ultimate aim to bring to book those who are causing wrongful loss to the exchequer. The objective is to ensure enforcement of law and to create deterrence.”

Tax sleuths found various modus operandi through which tax credit was fraudulently claimed. This includes availing ITC without receipts of the input goods, invoices used to avail ITC not being legitimate invoices as no goods were supplied with such invoices and in certain cases, tax was not paid on input invoices and only fake invoices have been issued.

Explaining how the ITC scam is ultimately affecting the exchequer, an official in the know said, “In these cases, attempts are made to avail ITC which is not due to them. Such fraudulent credit is then subsequently utilised for payment of GST liability. It replaces the cash payment. If such fraudulent credit was not available, the exchequer would have got the tax in cash. In most cases, entire tax liability is paid through ITC. Tax payers pay less or nil amounts in cash which is a loss to the exchequer.”

Tax sleuths raised concern that these bogus transactions are also used to augment turnovers, on which loans are availed, which subsequently turn into NPAs.

Source :

Posted By : Ratan Singh on Tue, 12 Mar 2019
Related News from Steel segment