RANCHI: The investigation team of the Central GST department here has unearthed the scam of Rs 300 crore by at least 19 firms.
According to Principal Commissioner, CGST, S K Singh, the analysis of documents made available by various firms, mostly located in Ranchi, show that these firms cornered input tax credit (ITC) on the basis of fake bills and invoices and transferred fake ITC to other firms.
Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs. Say, you are a manufacturer – tax payable on output (FINAL PRODUCT) is Rs 450 tax paid on input (PURCHASES) is Rs 300 You can claim INPUT CREDIT of Rs 300 and you only need to deposit Rs 150 in taxes.
On the basis of the data analysis, the department investigated 17 firms on Wednesday and Thursday last and found that seven firms were registered on a single address and another five firms were registered on another address. The department found that no firms existed at the said address. The address of several firms was found to be fake.
The department has found that 19 firms issued fake GST bills for Rs 294 crore and evaded around Rs 26.51 crore tax.
The investigation found that a single email ID and mobile number were used for the GST registration of several of these firms. The firms which got the benefits of ITC are located in Odisha and Chhattisgarh. “So, we have informed our counterparts in these states to take action against these firms,” said a CGST official.
The firms which have been found to be involved in the scam, according to the CGST department, included M/s TNM Enterprises, M/s Singhnia Construction, Shiv Shakti Enterprises, Vishal Traders, Preet Traders, Dharam Enterprises, Radhey Traders, Mishra Traders, Lakhveer Singh, Firoz Hussain, Krishna Traders, Om Enterprises, Maa Lakshmi Enterprises, Ganesh Traders, Shivnath Kumar, Tarachandi Enterprises, SDM Enterprises, and Vinayak Enterprises. All these firms, except Tarachandi Enterprises (Dhanbad), are located in Ranchi.
