Seven firms booked for taking input credit without actual supply of goods
The Central Goods and Services Tax (CGST) unearthed tax evasion of Rs 68.04 crore in Raipur and registered separate cases against seven firms. It is alleged that these firms were taking input tax credit without making actual supply of goods.
Atul Gupta, Principal Commissioner of CGST said, “A big campaign has been launched against those issuing fake input tax credit under GST. Under this, the Raipur office of CGST has registered cases against seven firms on September 21. Tax evasion of Rs 68.04 crore has been exposed. The firms against whom the case has been registered include BizoticDevelopersPvt Ltd, Golden Traders, ARL Trading Company, Devi Trading Co, Badri Enterprises, Kumar Traders and Singh Brothers.”
Officials said these are bogus firms and were engaged in obtaining and passing of input tax credit without actual supply of goods to several taxpayers within and outside Chhattisgarh. He hoped that the persons operating the fake input tax credit racket would be identified soon. Strict action will be taken against such people as per law.
The racket of such fake firms is active in many states including Chhattisgarh. These people claim input tax credit of GST with the help of bogus bill. Such cases have been caught in Chhattisgarh in the past as well. In August itself, the Central GST had also arrested two businessmen. In April also, documents of tax evasion worth crores were found from a businessman. Last year, two Raipur-based businessmen were caught running a racket of fake input tax credit invoices.
Input tax credit in GST refers to a system in which you get credit in lieu of tax paid elsewhere. Later, if you ever need to pay tax, you can use this credit in lieu of money. In this way, you do not have to pay tax repeatedly on the business of one commodity.