GST Fake billing cases come under scanner of Income Tax Department

Following the Goods and Services Tax (GST) department’s crackdown on fake billing, the income tax departent has begun to tighten its noose around the accused. After analysing the data of fraudulent sales and transactions, as well as bank entries, the I-T department issues notices to those involved in fake invoicing to pay income tax on a regular basis. The I-T Department are also keeping a close eye on the cases of fake billing and fraudulently claiming input tax credit (ITC) that were busted by GST authorities, so that they, too, can take action against the accused in accordance with the laws and regulations outlined in the Income Tax Act.

An income tax specialist, speaking on the condition of anonymity, confirmed the incident, saying, “As the individuals involved in bogus invoicing exhibit a large number of sale purchase transactions in their books of accounts in order to defraud the GST authorities of tax. However, in order to avoid authorities and convince them that these sales and purchases are genuine, these individuals also exhibit cash transfer, cash deposit, and withdrawal activity in bank accounts. Because these individuals move large sums of money from other people’s bank accounts to spin this web of transactions, the I-T department can take action against them in a variety of ways. Notices can be sent to such people for a variety of reasons, including the source of the cash and bank transfers into the account, as well as the authenticity of the funds. People whose PAN cards, Adhaar cards, and bank accounts were utilised in fake billing will face consequences from the I-T department.”