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Expense sleuths reveal Rs 650 crore counterfeit receipt trick in Maharashtra

By :
J Sam Daniel Stalin | Chennai | Last Updated on: 26 February, 2019 10:41 AM

 The Raigad wing of the Central and Central Excise Commissionerate uncovered Rs 650 crore tax avoidance trick including counterfeit solicitations appearing of products and GST installment of about Rs 110 crore were purportedly made in the support of blamed firms to empower them to guarantee (ITC), sources up to date told ET.

Anand Mangal was captured and sent to legal care until March 8 by a nearby court in Panvel, a satellite town of Mumbai, while another denounced, Rakesh H Garg, is slipping away. Garg is a chief with Surya Ferrous Alloys Private Ltd, a Navi Mumbai based organization engaged with the assembling of fundamental iron and steel. Assessment sleuths have recuperated Rs 17 crores of money.

The team has been reserved under Section 132 of the CGST Act. While Mangal has been captured, Garg is fleeing", Shrawan Kumar, Commissioner, CGST, Raigad, told ET. Segment 132, CGST Act manages the discipline for different CGST related infringement including benefiting input assessment credit by raising phony solicitations. Sources said counterfeit solicitations were purportedly raised by gliding various shell organizations in the name and style of M/s Moksha Alloys Pvt Ltd, M/s Latisha Sales Agencies Pvt Ltd, M/s Cumong Ispat Pvt Ltd, M/s Aahan Ispat Pvt. Ltd, and M/s Tilibandha Sales Agencies and others.

These organizations don't exist and were made on paper as it were. There has been no genuine supply of products by these organizations, however just solicitations appearing of merchandise worth Rs 650 crore and demonstrating GST installment of about Rs 110 crore have been made in the support of above blamed firms so as to empower availment of info charge credit (ITC) based on these phony buys," an authority in know about the improvement told ET.

Garg, through his different organizations, benefited ITC of about Rs 110 crores. Accordingly, he asserted ITC on the supply of products that never happened. He at that point, through his organizations, issued solicitations worth more than Rs 650 crore without a genuine supply of merchandise, along these lines empowering the implied purchasers to benefit the prohibited ITC credit of about Rs 110 crores," included the authority.

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