Investigation against 1.25 lakh companies for GST evasion, know how the fraud happens

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The GST department is going to crack down on 1.25 lakh companies across the country. It is being said that these companies have made fake tax exemption (input credit tax) claims for GST evasion, which has been investigated. Which will continue till December.

It is being said that these 1.25 lakh companies are from across the country. Most of these may be fake. Apart from this, many government agencies and reputed companies are also involved in it. Central and state GST officials are investigating them. In the fraud, a fake company from Delhi has supplied five companies from the states of Madhya Pradesh, Bihar, Chhattisgarh etc.

Second phase of investigation

It may be noted that the Central Board of Indirect Taxes and Customs (CBIC) had launched a two-month special investigation drive. It was conducted between 14 May and 14 July. Under this, 77,200 organizations and companies were investigated. Out of which 20,800 were found to be fake. According to the board, the institutions were first identified as at risk. After this, the scope was expanded and 1.25 lakh companies were examined. This is the second phase of investigation against him.

This is how cheating is done

Under input tax credit, GST taxpayer is exempted on tax paid on inputs (raw materials) used in manufacturing. Many companies claim fake tax exemption through fake bills or invoices. For this, they do not actually supply goods and services but claim input tax credit by submitting fake bills. Due to which the revenue of the government is lost.

Also read: Advertisement For big industrialists, GST receipt has to be uploaded within 30 days

This is how tax evasion was caught

The list of suspicious companies has been prepared based on data analysis of Central Board of Indirect Taxes and Customs as well as important information and data received from other departments. In addition, other information including corporate tax returns filed by businessmen with the Income Tax Department and GST registration data has been analysed.

One lakh crore tax evasion was caught

In the financial year 2022-23 Rs. GST evasion of over 1.01 lakh crore has been detected. This figure is almost double compared to last year. In the financial year 2021-22, DGCI detected tax evasion of Rs 54,000 crore. Around 14,000 cases of tax evasion were reported in the last financial year, while the figure was 12,574 a year earlier.

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