GST fraud of Rs 150 crore unearthed after raids in Delhi, UP, J&K

By: |
March 6, 2020 7:53 PM

GST intelligence officials conducted raids at units in Jammu and Kashmir, Delhi and Uttar Pradesh, finding most of them to be fake companies, officials said.

The dummy firms had purportedly supplied goods worth Rs 1,500 crore to help claim ITC of about Rs 150 crore in the past two years.

The Directorate of the Goods and Services Tax Intelligence here has detected fraudulent input tax credit (ITC) claims totaling Rs 150 crore after a series of raids, officials said on Friday. GST intelligence officials conducted raids at units in Jammu and Kashmir, Delhi and Uttar Pradesh, finding most of them to be fake companies, officials said. The dummy firms had purportedly supplied goods worth Rs 1,500 crore to help claim ITC of about Rs 150 crore in the past two years.

The two Srinagar-based units used to get fake bills from the dummy firms and then claim ITC refunds from the government, officials said. The accused had deposited Rs 6 crore with the GST authorities. Officials said investigations are still in progress. Under ITC, manufacturers can deduct tax on inputs for their businesses from the amount that has to be paid to the government.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Balancing balance sheet: Cesses, surcharges help window-dress govt accounts
2Gross market borrowing: Govt may opt for another hike, but only by November
3H-CNG: Modi Govt notifies norms for alternative fuels