On the grounds of fraudulent billing, the Punjab Goods and Services Tax (GST) department has levied a penalty of Rs. 50.19 crores against a total of 12 companies. The department has formally concluded its adjudication process for these firms and has enforced the penalty accordingly.
The companies that are subject to penalties include Dashmesh Trading, with a penalty of Rs. 13.14 crore., PB Interior Decor, facing a penalty of Rs 7.44 crore., PK Trading, with a penalty of Rs 3.45 crore., Guru Har Rai Trading, incurring a penalty of Rs 5.24 crore., Gagan Trading, with a penalty amounting to Rs 6.37 crore., North Vogue, facing a penalty of Rs 2.23 crore., Shiv Shakti Enterprises, with a penalty of Rs 3.20 crore., Brij Trading Company, incurring a penalty of Rs 3.54 crore., Sri Balaji Trading Company, with a penalty of Rs 1.69 crore., Krish Enterprises, facing a penalty of Rs 1.71 crore., Pankaj Scrap Company, incurring a penalty of Rs 1.35 crore. And Sri Radhey Krishan Enterprises, with a penalty amounting to Rs 0.83 crore.
Upon concluding this rigorous evaluation, the GST department determined that these companies were indeed involved in fraudulent billing activities, which is a violation of tax regulations and potentially other legal provisions.
Consequently, they have enforced the penalties as per the prescribed legal framework. This action serves as a strong deterrent against fraudulent practices within the business community and underscores the importance of compliance with GST regulations to ensure fair and transparent financial transactions within the state of Punjab.
According to officials, the proprietors of these companies issued counterfeit invoices without actually delivering any goods, resulting in financial losses to the state treasury. Further stated that the penalty imposed matches the tax amount, and it will be collected in cash rather than being offset against Input Tax Credit (ITC).
In this particular case, it has been revealed by officials that a gold jeweller situated in the Lal Bazaar area has also faced penalties. The reason behind penalising this jeweller is the significant involvement of their bank account in the financial transactions of most of the 12 companies.
Additional Commissioner Jeevan Jot Kaur, Division-in-Charge Shaleen Ahluwalia, and ACST of Jalandhar-2 Rajmandeep Kaur played crucial roles in initiating and overseeing this action, reflecting the commitment of the authorities to uphold tax regulations and ensure accountability in financial transactions within their jurisdiction.s that are now facing penalties for fraudulent billing.
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