The phoney Input Tax Credit (ITC) was used to evade taxes around 5 crores, according to the Uttarakhand Goods and Services Tax Department. According to the department, businesses were using fraudulent ITC claims submitted on fake paper bills to reduce their GST obligations.
The GST department of all states has keenly observed the fake ITC claims and other frauds committed to evade tax.
The final consumption of goods and services is where the destination-based GST is assessed. The GST system is intended to be an extensive and unified tax system with the goals of streamlining the tax code, lowering tax evasion, and raising tax compliance.
The Jharkhand State GST department conducted raids on two battery recycling companies as well as two other transportation firms that provided services to the recycling business.
The Central Intelligence Unit (CIU) of the department has reportedly been keeping an eye on the transactions of these four companies for some time, according to the state tax department.
It was also claimed that the businesses attempted to demonstrate the acquisition of products by printing E-way bills on empty and other goods-carrying vehicles and displaying toll plaza passes.
The government’s close observation of tax evasion through raids is an advantageous aspect. The bogus raids that the GST officers perform for their own personal gain as well as the profit of other departments must be ignored by the taxpayers.
Recently, the Surat Police detained three people after they staged a fake raid on a textile store and demanded 12 lakh rupees from a businessman. The other two were imposters, while one of them was a Central Goods and Services Tax (CGST) superintendent. The occurrence took place on March 30, 2023.
Also, a group of police officers bribed a truck driver for Rs. 10,000 by impersonating state Goods and Services Tax (GST) officials.
The taxpayers must be aware of the reliability of the raid. They need to alert the relevant authorities right away if they think that such a raid is a hoax.
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