The Directorate General of GST Intelligence (DGGI), Pune Zonal Unit, has uncovered a GST fraud amounting to Rs 1,196 crore and has arrested one individual in connection with the case. The investigation, involving searches at multiple locations in Pune, Delhi, Noida, and Muzaffarnagar, has revealed a sophisticated network of bogus companies engaged in fraudulent Input Tax Credit (ITC) transactions, FinMin said in a statement on Wednesday. The accused had set up shell entities with no legitimate business operations, generating fake invoices and e-way bills to create a facade of genuine trade, it said. However, it said, these e-way bills had no RFID movements associated with them, confirming the absence of actual supply of goods. The fraudulent network facilitated the availing and passing of fake ITC worth Rs 1,196 crore. The arrested individual, the director of a private limited firm in Muzaffarnagar, is identified as the mastermind behind the operation, it said. The investigation .
GST evasion of over Rs 1.88 lakh crore was detected by Central GST officers during April-December 2024, the Lok Sabha was informed on Monday. Minister of State for Finance Pankaj Chaudhary said GST evasion, including ITC fraud cases, in 72,393 cases between April and December stood at Rs 1.88 lakh crore. 132 arrests were made and recovery of Rs 20,128 crore was made during the period. In the 2023-24 fiscal, CGST officials detected GST evasion of Rs 2.30 lakh crore in 20,582 cases. Recovery of Rs 31,758 crore was made and 223 people were arrested. In 2022-23 and 2021-22, GST evasion of Rs 1.32 lakh crore and Rs 73,238 crore was detected by CGST officials, respectively. Under the Goods and Services Tax (GST), taxes are levied under four main slabs 5 per cent, 12 per cent, 18 per cent and 28 per cent. Three special rates of 3 per cent, 1.5 per cent and 0.25 per cent are applicable on gold, silver, diamond and jewellery; cut and polished diamonds and rough diamonds, ...
The CBIC has said the Principal Commissioner or commissioner level officers can issue directions to recover GST dues before the stipulated three months of serving of demand order. Under the GST law, if a taxable person does not pay the amount specified in an order passed under the CGST Act within three months from the date of service of such order, the tax officer can initiate recovery proceedings only after the expiry of this period. However, in exceptional cases where it is necessary in the interest of revenue, the proper officer, after recording the reasons in writing, may ask a taxable person to pay the amount within a period shorter than three months. The Central Board of Indirect Taxes and Customs (CBIC) said it has been brought to its notice that some of the field formations are initiating recovery before the specified period of three months from the date of service of the order, even in the cases where the taxable person has not been specifically required by the proper ...
The Supreme Court told the Centre on Thursday that any arrest under the Goods and Services Tax (GST) Act should not be on mere suspicion but has to be based on cogent material and adherence to proper procedure. A bench of Justices Sanjiv Khanna, M M Sundresh and Bela M Trivedi said the material upon which an arrest is made should be verifiable by a magistrate. "An arrest under the Act cannot be on mere suspicion but after proper inquiry and adherence to the procedure laid down under the law. It should be based on material that should be verifiable by the magistrate and certified by the commissioner," the bench told Additional Solicitor General (ASG) S V Raju, who appeared in the court on behalf of the Centre. The ASG replied, "Yes, any arrest made is based on proper material. We do not arrest anybody in the air." The court is hearing a batch of 281 petitions that have challenged various provisions of the Customs Act, the GST Act and the Prevention of Money Laundering Act amid ...
The Supreme Court has asked the Centre to furnish details of issuance of notices and arrests done under the provisions of the Goods and Services Tax, saying it may interpret the law and lay down appropriate guidelines to avoid any harassment of citizens by depriving their liberty. A special bench of Justices Sanjeev Khanna, MM Sundresh and Bela M Trivedi, which is hearing a batch of 281 petitions challenging various provisions of the GST Act, Customs Act and the provisions of PMLA, voiced concern over the ambiguity in section 69 of the GST Act that deals with the powers of arrest. The bench said it would interpret the law to "strengthen" the liberty, if need be, but not allow citizens to be harassed. "You furnish the data on notices issued and arrests made under the GST Act for alleged defaults of Rs 1 crore to Rs 5 crore respectively for the past three years. There can be harassment of people and we won't permit that. If we find there is ambiguity in the provision, we will set it .
Manufacturers of pan masala, gutka and similar tobacco products will have to pay a penalty of up to Rs 1 lakh, if they fail to register their packing machinery with the GST authorities with effect from April 1. The move is intended to curb revenue leakage in the tobacco manufacturing sector. The Finance Bill, 2024, introduced amendments to the Central GST Act, where a penalty of Rs 1 lakh would be levied for every machine not registered. Further, such non-compliant machinery would face the risk of seizure and confiscation in certain cases. Based on the recommendation of the GST Council, the tax authorities had last year notified a special procedure for registration of machines by tobacco manufacturers. The details of existing packing machines, newly-installed machines, along with the packing capacity of these machines, have to be furnished in Form GST SRM-I. However, there was no penalty notified for the same. Revenue Secretary Sanjay Malhotra said the GST Council in an earlier .
DGGI believes that since delivery is a service, Zomato & Swiggy are liable to pay GST on service
Rishi Raj, a Gurgaon-based avid player of online poker, believes that the government has been successful where most of his family failed - getting him to quit the real money game
You have to make appropriate declarations in the shipping bill and then file the brand rate fixation application to your jurisdictional authorities
'Nothing is going to happen in three weeks,' CJI tells firm counsel
The move comes after it was found that fake office places were created for verification; geotagging functionality is currently available to taxpayers registered in Delhi and Haryana
"Right now, we are just looking to maintain stability (in tax rates), a stable tax regime. Minor changes will always be there... major taxation change like merger of tax rates
One of the proposals before the Council is to raise the threshold limit for launching criminal proceedings under GST for offences over Rs 20 crore
Proposal will reduce litigation for businesses but may lead to longer prison sentences, they say
So far, the CBIC has made 960 arrests, including of 20 chartered accountants, under the current provision
The court, which clubbed the petitions, had posted the matter for next hearing on October 19
Kerala Finance Minister K N Balagopal has written to Nirmala Sitharaman asking her not to include borrowings of state entities while fixing their debt limits
Says govt running away from discussion in Parliament on price rise, Rs
In the last five years, since its launch in July 2017, the GST journey has been difficult for both economic and political reasons. Read more on five years of GST in our top headlines
Many changes in the GST laws have come into effect from the beginning of this year