23 Teams of GST Department Raids 43 Steel-Iron Firms, Officials Seizes Tax Evasion of Rs. 128 Crores 

In Noida, on the orders of CM Yogi, the Commercial Tax Department (GST) department took major action. On Saturday, 23 Income Tax teams raided 43 firms in Delhi NCR for evading GST. During this, tax evasion of 128 crores was caught. The team conducted raids at traders in Noida, Dadri, Ghaziabad, Hapur, Bulandshahr, Secunderabad and Kharja. FIR has also been lodged against some firms. This action has been taken against iron-steel traders.

Sources have revealed that these firms made bogus Input Tax Credit (ITC) of 128 crores showing a business of 650 crores by forming chains. These transactions were done only on paper and not in physical form. Now their real beneficiaries are being identified. Recovery action will be taken by blocking their ITC.

Fake GST number taken

Investigation has revealed that some firms got the GST registration done on the basis of fake forms. Take advantage of ITC by creating e-way bill. After completion of investigation, FIR will be lodged against such traders. Officials said that these firms were constantly under the watch of the State GST Department. Got complaints many times. Action is being taken on this basis from 10 am. Still the paperwork is being checked.

What is Input Tax Credit?

Input tax credit under GST is a tax that the taxpayer pays on the purchase and subsequently claims the credit on the sale of goods/services. In other words, ITC is the credit claimed by the taxpayer to the extent of the taxes paid by him to reduce his tax liability. Input tax credit is available on purchase of goods and services. If used or used for taxable supplies. It ensures smooth flow of credit in GST.