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Officials Bust 78 Bogus Firms with Estimated Fraud of INR 470 Crore

13Sep

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Corporate

Officials Bust 78 Bogus Firms with Estimated Fraud of INR 470 Crore

Highlights The raids on these companies were conducted on 11th August 2019 (Wednesday) by 1,200 officers in 337 locations across 27 cities.The potential fraud is estimated to be around INR 470 crore of input tax credit on an invoice of INR 3,500 crore.The exporters were exporting goods on payment of IGST almost completely out of the input tax credit claimed on the basis of fake supplies. The synergy of the Director General of GST Intelligence and the Director General of Revenue Intelligence have discovered dozens of fake companies and exporters who were illegitimately claiming Integrated Goods and Services Tax (IGST) from the government. The raids on these companies were conducted on 11th August 2019 (Wednesday) by 1,200 officers in 337 locations across 27 cities. The potential ...

Companies that Claimed Over 95% Input Tax Credit Under Radar

12Mar

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Corporate

Companies that Claimed Over 95% Input Tax Credit Under Radar

Highlights: Tax authorities have dropped emails looking for answers from companies which paid over 95% of their tax liability by claiming Input Tax Credit.The questions have arisen due to a big change in turnover reported by the companies, the decline in growth of central GST liability.The Institute of Chartered Accountants of India (ICAI) western regional council has written and questioned the tax authorities practice in dealing with such cases. Companies that used Input Tax Credit for paying most of its Goods and Services Tax (GST) liability or the companies that reported a drastic change in the turnover are being questioned by the tax officials. Tax authorities have dropped emails looking for answers from companies which paid over 95% of their tax liability by claiming Input T...

Circular Trading in Companies: Everything You Need to Know

11Mar

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Academia

Circular Trading in Companies: Everything You Need to Know

Circular Trading has been ever existing in the Indian Market, but many tend to believe that it only takes place in the stock market. However, that is not the case, Circular Trading can also take place into companies or trading businesses. Before we further get into the depth and analysis of circular trading, let’s start with the basics and try to understand the following aspects. What is Circular Trading in Companies? Circular Trading is a type of scam that takes place when a company tries to create a flow of fake sales transaction with its collusioned parties by producing fake invoices. Now, we all wonder, why do they do that? What is the illegal advantage of it? Circular Trading: It’s illegal Advantages This type of scam basically creates a huge financial impact on companies...

11Sep

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News

Karnataka Men Arrested for First GST Fraud in the State

For the first time, a Criminal case has been registered under Goods & Services Tax(GST) in Karnataka. Two men from Bengaluru have allegedly committed fraud by raising fake invoices without paying any GST. Two businessmen named Hameed Rizwan Parthipady Ismail, proprietor of ARS Enterprises in Mathikere, dealing in ferrous and non-ferrous scrap and Jeetendra Kantilal Gandhi who owns Ganndhi Iron & Steel company in Kalasipalyam are the accused who used fake invoices to collect 8.16 Crore in the form of Input Tax Credit(ITC). Input Tax Credit is the credit manufacturer’s receive for paying input taxes towards inputs used in the manufacture of products. During the investigation, it was found that the accused had availed ITC without selling any goods or services to anyone and without a...