GST dept unearths Tax Fraud by Vadodara-based Firm
The Goods and Services Tax ( GST ) department has detected tax evasion by a Vadodara-based firm that was fraudulently claimed input tax credit worth crores. The Firm, KSEG India International was found wrongfully availing input tax credit to the tune of Rs 3.3 crore. The company management showed fake invoices issued by various firms sans physical or actual movement of...
The Goods and Services Tax ( GST ) department has detected tax evasion by a Vadodara-based firm that was fraudulently claimed input tax credit worth crores.
The Firm, KSEG India International was found wrongfully availing input tax credit to the tune of Rs 3.3 crore. The company management showed fake invoices issued by various firms sans physical or actual movement of goods.
“The investigation has also revealed that these supplier firms existed only on paper and they have issued only invoices to their customers without supplying any physical or actual movement of goods to facilitating false claim of ITC,” an official release by Mallika Mahajan, principal commissioner, Central GST and Central Excise, Vadodara 1, said.
The proprietor of the company, Sazid Ali Khan, was arrested by GST officials on Saturday. He was given bail on the issuance of Rs 35 lakh bond, a GST spokesperson said. GST officials suspect that there may be more such firms issuing fake invoices to KSEG India International without supplying any goods.
GST department has booked several such companies and arrested the top management for fraudulently availing input tax credit by showing invoices of fake firms.
