SGST department conducted a series of raids on more than 100 'bogus' firms for alleged flow of suspicious cash transactions, uncovering tax evasion of Rs.21 crores.
Reetu | Oct 26, 2023 |
MP GST Department cracks more than 100 Bogus Firms: Unearths GST Evasion of more than Rs.21 Crore
In accordance with Election Commission directives, the State Goods and Services Tax (GST) department conducted a series of raids on more than 100 ‘bogus’ firms in the state suspected of being involved in the alleged flow of suspicious cash and distribution of freebies by political parties, uncovering tax evasion of Rs. 21 crores.
The SGST department discovered 396 fraudulent companies throughout the state as a result of a preventive vigilance mechanism in the poll-bound state. These companies are suspected of creating fake invoices and dealing in commodities that are vulnerable to tax evasion, such as clothing, utensils, mobile phones, electronics, cosmetics, and tobacco, among other things.
Primarily, 102 organisations were allegedly found to have dodged taxes worth Rs. 21 crore by manufacturing bogus invoices, while a probe is ongoing to determine the participation of other accused entities.
The department has begun the process of cancelling these bogus firms‘ registrations and is examining other firms associated with them.
An official source from SGST department on condition of anonymity stated, “We have identified close to 400 firms that have either no physical existence or are conducting business at the registered premises and using fake invoices to claim wrong ITC and have evaded huge taxes. We are also reviewing data in order to contact everyone involved in this network of fraudulent organisations and transactions.”
The department is reaching out to suspicious companies by analysing data, receiving tips, and verifying physical documents such as pan numbers, documents, and mobile numbers.
Following the instructions of SGST commissioner Lokesh Kumar Jatav, the department has launched sectoral investigations into industries that are likely to be involved in tax evasion and exploited as freebies. Garments, electronics, scrap merchants, and pan masala are among the industries where the government has conducted searches.
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