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GST News Details

Delhi Man Booked in Hisar for Rs 5cr GST Fraud

Hisar: The police have registered a case of Goods and Services Tax (GST) fraud against a Delhi-based owner of a bogus firm claimed to be located in Hisar. The accused allegedly utilised input tax credit to the tune of over Rs 5 crore for the disposal of output tax liability of some fictitious firms without actually paying the tax.

Based on a complaint of excise and taxation officer (ETO) Sanjeeta Kochar, a case under Section 420 (cheating) of the IPC has been registered against accused Govinda, a resident of Nihal Vihar, Nilothi, New Delhi and proprietor of the bogus firm, registered by the name of M/s Radhika Traders, Namdev Dharamshala, Hisar.

In her complaint, the ETO stated that the said proprietorship firm was registered under the GST Act, 2017, and had a linked account of Bank of Baroda, Paschim Vihar, New Delhi.

“In course of verification, it was found that no such firm exists at the location mentioned by the proprietor in his application for GST registration,” the ETO said in her complaint.

As per the returns submitted by the accused, total outgo of Rs 41,52,08,300 was shown by him and he transferred fake input tax credit of Rs 5,68,39,837 to various firms.

Govinda has been found involved in evasion of tax through bogus businesses registered under the GST Act, 2017 and by wilfully making wrong statements and suppressing facts, thus causing loss of revenue to the state exchequer, the officer said.