GST: Tax Dept files FIR against Trader for evading Rs. 50 Cr

GST Evasion - GST - Companies

The Trade and Taxes Department, Delhi has filed FIR against a businessman who allegedly used forged documents, incorrectly claimed input tax credit (ITC) under GST regime and passed some of it along to other businesses.

The Department’s Commissioner, H. Rajesh Prasad, on Wednesday, confirmed that the department had filed a complaint with the Economic Offences Wing of the Delhi police in connection with the fraud.

A complaint was lodged against Mr. Pankaj Chawla, proprietor of Kavita Industries, for allegedly defrauding the government by using fake documents, falsely claiming ITC without being eligible and transferring Rs. 15 crores in ITC to other traders. The remaining credit of Rs. 35 crore had been suspended by the department when it learned of the fraud, the commissioner said.

After the GST- rollout on 1st July 2017, the accused a huge amount of input tax credit of Rs. 47.46 crore.

On June 22, when the inspector visited the Wazirpur address given by the accused for signing up for the GST portal, it was found that no such company existed there. The inspector then visited two residential addresses associated with the company and found that both were non-existent.

The department then sent a request to Karnataka Bank, in which the accused had declared an account, to verify the details, but was informed that no such account existed.

When the PAN card details given by the accused was verified, it was revealed that no one by the name of the accused lived or worked there. The department further found that the accused’s company had used the ITC to set off its output tax liability of Rs. 15.8 crore.

To curb tax evasion under the GST regime, the Delhi government on last week launched an extensive drive against tax and return defaulters. The move aims at checking tax evasion and bridge the revenue gap.

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