Page 42 - Gst

GST officers bust nexus of 30 fake firms for passing Rs 50 cr ITC

The GST officers have busted a nexus of more than 30 fake firms, who have availed ineligible input tax credit (ITC) of over Rs 50 crore, the finance ministry said on Wednesday. In an ongoing two-month-long special drive against fake registration, the Central GST Delhi West Commissionerate found multiple entities registered on the same address. During investigation, it was found that the said address was existent but the owner of the premises denied any knowledge about the existence of any firm. In a statement, the finance ministry said searches were undertaken at multiple locations in Delhi and it was found that a person named Shiva has been obtaining KYC credentials from people on the pretext of getting loans sanctioned for them. "Further search revealed that Shiva has created more than 30 fake firms and sold them in cash at a premium. He also stated that to avoid physical verification, he used AADHAR authentication to obtain these GST registrations," the ministry said. These ...

States' financial profile better in FY23; debt stays high: RBI report

At a disaggregated level, a few large states have debt-to GSDP ratios exceeding 35 per cent, the report added

Spurring fiscal equality: Ratio of GST to GSDP higher in poorer states

One aspiration for the GST system was that it would lead to regional development as it is a destination-based tax regime

ITC can't be denied under GST even when post-supply discounts received: AAR

Value of supply would stand reduced, while tax liability remains as it is: Andhra authority

Odisha CM Patnaik urges FM Sitharaman to withdraw 18% GST on Kendu leaves

Odisha Chief Minister Naveen Patnaik has urged Union Finance Minister Nirmala Sitharaman to completely waive the 18 per cent GST tax on Kendu leaves as it would adversely affect the livelihood of the poorest of the poor section of the society. Patnaik in a letter written to Sitharaman on Monday said that 18 per cent GST on Kendu leaves should be waived in the larger interest of poor and tribal people associated with Kendu leaves trade in the state. "Imposition of GST (18%) on Kendu leaves is adversely affecting the Kendu leaves trade. This in turn affects the livelihoods of Kendu leaves pluckers, binders and seasonal workers and implementation of social security and welfare schemes for them," Patnaik wrote in the letter. Stating that the Kendu (Tendu) leaf, which is a minor forest produce, is the financial backbone of 8 lakh kendu leaf pluckers, binders and seasonal workers of Odisha, Patnaik said the people engaged in the trade are mostly tribal and women belonging to the poorest o

Delhi govt sets up GST registration cell to boost revenue collection

The Delhi government has set up a centralised GST registration cell Sewa Kendra to improve the registration process, combat tax evasion and boost revenue, said an official statement on Tuesday. Setting up of the Sewa 'Kendra' marks a significant milestone in the journey towards improving the GST registration process, Delhi Finance Minister Kailash Gahlot said. "Under the able leadership of Chief Minister Arvind Kejriwal, it is a testament to the Delhi government's commitment to promoting transparency, curbing tax evasion and optimising revenue collection," the minister said. The Trade and Taxes Department of the Delhi government has taken a significant step towards improving the GST registration process with the establishment of the centralised GST registration cell. This new initiative aims to streamline the registration process, minimise deemed registrations, and combat tax evasion, thereby safeguarding government revenue, the statement read. The primary objective of the cell is

ICICI Pru Life gets GST demand notice for Rs 492 cr, firm to contest matter

Private sector ICICI Prudential Life on Monday said it has received a GST demand notice of Rs 492.06 crore from tax authorities. The matter relates to an industry-wide issue of input tax credit and the company believes that it has availed eligible input GST credit in compliance with the provisions of the Central Goods and Service Tax (GST) Act, 2017, and other applicable laws, ICICI Pru said in a regulatory filing. The late evening filing said the insurer has received a show cause cum demand notice (SCN) from the Directorate General of GST Intelligence (DGGI), asking the company to show cause as to why a tax of Rs 492,06,48,296 pertaining to the period July 2017 to July 2022 should not be demanded. The company would take appropriate steps in due course to reply to the SCN and contest the matter, it said. "During the course of inquiry, the company had deposited Rs 190 crore, without accepting any liability in this regard," it said. The deposit was made in April this year. In the la

DGGI officers busts syndicate operating 569 fake firms, arrests mastermind

The GST intelligence officers have busted a syndicate operating 569 fake firms and passing on fraudulent tax credit of Rs 1,047 crore, the finance ministry said on Monday. The Jaipur Zonal Unit of Directorate General of GST Intelligence (DGGI) has busted a major crime syndicate operating in 14 states, based out of Delhi. The ministry said Delhi-based Rishabh Jain, aged 30, had hired 10 employees for operating these fake firms. After extensive recce and data analytics, the officials of DGGI, Jaipur were able to trace this mastermind in Delhi and nabbed him. This syndicate has issued invoices having taxable turnover of Rs 6,022 crore involving input tax credit (ITC) of Rs 1,047 crore through these 569 fake firms to more than 2,000 beneficiary firms. The majority of the fake firms are located in Delhi with presence in 13 other states -- Rajasthan, Uttar Pradesh, Punjab, Bihar, Jharkhand, Gujarat, Maharashtra, Haryana, West Bengal, Karnataka, Goa, Assam and Uttarakhand. So far, 73 ban

Instant line of credit, industry networking top priorities of MSMEs: Survey

The majority of micro, small and medium enterprises (MSMEs) feel the instant line of credit and industry networking are the top requirements in the financial services and non-financial services category, a survey said on Monday. Over 55 per cent of the total MSMEs interviewed said an instant line of credit is their top requirement to accelerate everyday business decisions, as per the 'MSME Sentiment Survey' by fintech Kinara Capital. In addition, 16 per cent of respondents favoured flexible repayment products that will give them the choice to make daily or weekly loan payments or variable loan payments, based on their business turnover for the selected time period, it added. "There is a growing acknowledgement of the importance of MSMEs and unlocking this sector's full potential will require a personalised approach. Our survey gave MSMEs an opportunity to vocalise their challenges and needs. "It is a sign that India's small business entrepreneurs are now seeking much more than acce

Under scanner: Insurance companies likely to soon face GST audits

Any mismatch in information across documents could raise a red flag

India Inc feels time ripe for next phase of GST reform: Deloitte Survey

A Deloitte survey revealed that Indian industries believe it's time to uncover the next phase of GST reforms to enhance the ease of doing business.

Rs 2 trillion outflows in sight, RBI's four-day VRR auction sails through

Banks expect more such auctions in June

Reserve Bank of India may need to pump in funds on liquidity crunch

GST payments and quarter-end credit demand may lead to such a situation

GST council may mull steps to prevent fake generation of ITC: Official

GST Council in its meeting next month, likely to discuss measures to ensure strict provisions for preventing fake generation of Input Tax Credit, aiming to prevent tax evasion, a senior official said

Shell cos to fake invoice: How firms trying to evade GST are getting caught

DGGI has unearthed number of modus operandi by which tax evasion has been done in the recent past

GST officers unearth 461 fake entities involved in Rs 863 cr ITC fraud

The GST Intelligence officers have unearthed a racket involving 461 shell/fake entities, which had passed on fraudulent input tax credit of Rs 863 crore. According to the Finance Ministry, the Gurugram Zonal Unit of the Directorate General of GST Intelligence busted the racket, which passed on fraudulent Input Tax Credit (ITC) through fake shell entities following a search operation. "Huge number of forged/ morphed/ fake soft copies of documents like rent agreements, electricity bills, Aadhar card, driving license, PAN card, etc. were detected in the laptops resumed from this secret office, which were used to create and operate their fake entities. "The forensic examination of the laptops, devices seized from this office led to the eventual detection of ITC fraud to the tune of Rs 863 crore, involving fake 461 entities and arrest of two key operatives," the ministry said on Thursday. The initial investigation indicates that the fraudulent ITC credit has eventually travelled to the

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CBIC to assign risk rating to GST applications, taxmen to verify documents

In order to check fake GST registration, CBIC will assign a risk rating to all applications and tax officers will cross-verify the documents submitted by the applicants with municipal records. The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday issued instructions to field offices after it came to light during the ongoing two-month special drive that fraudsters have misused PAN and Aadhaar numbers of people to obtain GST registrations. In the ongoing all-India drive, Centre and State GST officers have detected over 15,000 fake registrations and are initiating punitive action against the perpetrators. They are also trying to find out the mastermind who are the real beneficiaries. As per the instructions, the Directorate General of Analytics and Risk Management (DGARM) and GST Network would give a risk rating -- High, Medium and Low -- to each application for registration, based on data analytics and risk parameters. This will facilitate a "targeted approach in ..

50,000 cases to be taken up for GST audit in FY24, says CBIC chairman

Authority's target to be based on risk parameters

GST evasion carried out through 4,909 bogus establishments: Tax official

Authorities have detected GST evasion to the tune of more than Rs 8,100 crore and it has been found that the offence was carried out through 4,909 bogus business establishments spread in parts of the country, a tax official from Madhya Pradesh said on Wednesday. MP Commercial Tax Commissioner Lokesh Kumar Jatav said the state Goods and Services Tax (GST) Department got the initial clues of this big tax evasion during a month-long investigation of e-way bills of an establishment in Indore. "On a detailed analysis and scrutiny of the data, a total of 4,909 suspicious business establishments were found across the country. Of these, a maximum of 1,888 establishments are in Delhi, 831 in Uttar Pradesh, 474 in Haryana, 210 in Tamil Nadu, 201 in Maharashtra, 167 in Telangana and 139 in Madhya Pradesh," he said. Jatav said that these 4,909 establishments under investigation showed a turnover of about Rs 29,000 crore in GST returns during the financial years 2021-22 and 2022-23 and the ...