DG of the GSTI said investigation has revealed that a modus operandi is being followed whereby fake invoices are being generated for goods which have not been supplied at all.(Pradeep Gaur/Mint)
DG of the GSTI said investigation has revealed that a modus operandi is being followed whereby fake invoices are being generated for goods which have not been supplied at all.(Pradeep Gaur/Mint)

GST investigation wing unearths Rs 2000 crore tax evasion in two months

A senior government official said that fewer than 1 lakh people out of the 1.1 crore registered businesses pay 80% of the tax.
By Press Trust of India | Press Trust of India, New Delhi
UPDATED ON JUN 27, 2018 04:22 PM IST

The GST investigation wing has detected tax evasion of over Rs 2,000 crore in two months, and data analysis reveals that only 1% of over 1.11 crore registered businesses pay the bulk of the taxes - 80%, a senior official said on Wednesday.

Central Board of Excise and Customs (CBIC) member John Joseph said like small businesses which make mistakes while filing GST returns, multinationals and big corporates too have slip-ups.

“If you look at the way tax revenues are paid, it gives an alarming picture. We have registration of more than 1 crore businesses. But if you look at where the tax is coming from, it is less than 1 lakh people paying 80% of the tax, one does not know what is happening in the system, it is an important thing to study,” Joseph said at an Assocham event in New Delhi.

Joseph, who is also the Director General of Goods and Services Tax Intelligence (DG GSTI), said the analysis of composition dealers data shows that most of them have an annual turnover of Rs 5 lakh. “This shows that a lot of compliance is required.”

Under the composition scheme, traders and manufacturers are allowed to pay taxes at a reduced rate of 1%, while restaurant owners have to pay at 5% rate. The scheme is open for manufacturers, restaurateurs and traders whose turnover does not exceed Rs 1.5 crore.

Joseph said investigation has revealed that a modus operandi is being followed whereby fake invoices are being generated for goods which have not been supplied at all.

Based on these invoices, some entities are claiming input tax credit. Besides, without actually exporting goods, some entities are claiming GST refunds based on fake invoices.

“Government revenue is being taken away. We in a short period of 1-2 months have detected over Rs 2,000 crore evasion which could be only the tip of the iceberg,” Joseph said, adding the GST Intelligence wing will step up efforts in the days ahead.

SHARE THIS ARTICLE ON
app
Close
The benchmark S&P BSE Sensex gained 0.6% to 49,177.99 by 0353 GMT.(Mint file photo)
The benchmark S&P BSE Sensex gained 0.6% to 49,177.99 by 0353 GMT.(Mint file photo)

Indices close in red: Sensex falls 937 points, Nifty below 14,000

By hindustantimes.com
UPDATED ON JAN 27, 2021 04:22 PM IST
Sensex sheds 937 points; Nifty ends below 14,000 dragged by banks, metal stocks
Close
Under an adverse economic scenario considered by the IMF, the world’s banks would fall $420 billion below regulatory capital requirements.(Reuters file photo)
Under an adverse economic scenario considered by the IMF, the world’s banks would fall $420 billion below regulatory capital requirements.(Reuters file photo)

IMF favours extension of pandemic support, thrust on infra investment in Budget

PTI
PUBLISHED ON JAN 27, 2021 03:32 PM IST
On Tuesday, the IMF projected an impressive 11.5% growth rate for India in 2021. While this is attributable to the stronger than expected recovery, Gopinath said India still has some distance to go.
Close
European Union (EU) flags outside the Berlaymont building in Brussels, Belgium.(Bloomberg)
European Union (EU) flags outside the Berlaymont building in Brussels, Belgium.(Bloomberg)

European economy lags behind China and US on pandemic recovery

Bloomberg
PUBLISHED ON JAN 27, 2021 03:23 PM IST
  • That was the upshot of the International Monetary Fund’s forecasts on Tuesday, which downgraded the growth outlook for 2021 across Europe and underscored a generally poorer performance compared with China and the US.
Close
The European Commission in its 2014 decision said Goldman Sachs, as the parent company, had decisive influence over Prysmian. A lower EU tribunal in 2018 backed its argument.(REUTERS)
The European Commission in its 2014 decision said Goldman Sachs, as the parent company, had decisive influence over Prysmian. A lower EU tribunal in 2018 backed its argument.(REUTERS)

Goldman Sachs loses legal fight against EU cartel fine

Reuters
PUBLISHED ON JAN 27, 2021 03:15 PM IST
Its penalty included a joint fine of 37.3 million euros with Goldman Sachs, which had acquired the Italian company via one of its private equity funds in 2005 but has since sold its holding.
Close
It is worthwhile to appreciate the full achievement of TCS. In 2000, TCS was not a listed company. It was not even the segment leader in India. By 2010, its market cap had grown to a creditable $25 billion and it had become the segment leader in India(REUTERS)
It is worthwhile to appreciate the full achievement of TCS. In 2000, TCS was not a listed company. It was not even the segment leader in India. By 2010, its market cap had grown to a creditable $25 billion and it had become the segment leader in India(REUTERS)

TCS third most valued IT services brand globally: Brand Finance

PTI
PUBLISHED ON JAN 27, 2021 03:06 PM IST
TCS has celebrated strong revenue growth as demand grows for its core transformation services and through winning deals - worth over $6.8 billion in the fourth quarter of 2020 alone, it added.
Close
Oil has jumped almost 50% since the end of October but the rally has faltered recently on concerns about the near-term demand outlook due to Covid-19. China is facing a resurgent outbreak, there are fears about virus variants, while the UK became the first nation in Europe with 100,000 deaths. (Representative Image)(Reuters/ File photo)
Oil has jumped almost 50% since the end of October but the rally has faltered recently on concerns about the near-term demand outlook due to Covid-19. China is facing a resurgent outbreak, there are fears about virus variants, while the UK became the first nation in Europe with 100,000 deaths. (Representative Image)(Reuters/ File photo)

Oil advances after report points to declining US stockpiles

Bloomberg
PUBLISHED ON JAN 27, 2021 02:31 PM IST
Futures climbed 0.7% after slipping on Tuesday. The American Petroleum institute reported inventories fell by 5.27 million barrels last week, according to people familiar.
Close
Both long term goals such as retirement and short term goals such as a vacation abroad can be easily achieved with a judicious mix of debt and equity mutual funds specific to each goal.
Both long term goals such as retirement and short term goals such as a vacation abroad can be easily achieved with a judicious mix of debt and equity mutual funds specific to each goal.

Understanding financial freedom from the eyes of millennials

By HT Brand Studio
PUBLISHED ON JAN 27, 2021 12:01 PM IST
Given that millennials tend to steer clear of investment avenues that do not afford flexibility and ease of managing, it is unsurprising that more and more millennials are gravitating towards mutual fund investments.
Close
Short-term bond yields surged, with yields on debt maturing in 2025 jumping 24 basis points this month.(Bloomberg File Photo)
Short-term bond yields surged, with yields on debt maturing in 2025 jumping 24 basis points this month.(Bloomberg File Photo)

Bonds head for losses on PM Modi’s near-record debt sales

Bloomberg
PUBLISHED ON JAN 27, 2021 10:41 AM IST
The relentless supply of sovereign debt has been the biggest hurdle for Indian bonds this fiscal year.
Close
BSE building in Mumbai (PTI)
BSE building in Mumbai (PTI)

Sensex opens 210 points lower at over 48,000; Nifty opens at over 14,000

PTI
UPDATED ON JAN 27, 2021 10:30 AM IST
On the Sensex chart, IndusInd Bank, Reliance Industries, Dr Reddy’s, Asian Paints, NTPC and Bajaj FinServ were major losers.
Close
A Microsoft logo is seen in Los Angeles, California, US(REUTERS)
A Microsoft logo is seen in Los Angeles, California, US(REUTERS)

Microsoft earnings rise as pandemic boosts cloud computing, Xbox sales

Reuters
PUBLISHED ON JAN 27, 2021 08:04 AM IST
The company's shares rose 5% in extended trading after gaining about 41% in 2020 as COVID-19 shifted computing to areas where the software maker has bet big.
Close
Proceeds will be used to finance early redemption of dollar bonds maturing next year. (HT)
Proceeds will be used to finance early redemption of dollar bonds maturing next year. (HT)

Adani Ports to raise $500mn through bonds

, Livemint, Mumbai
PUBLISHED ON JAN 27, 2021 05:58 AM IST
  • The proceeds of the bond sale would be used to finance early redemption of dollar bonds of a similar amount maturing next year.
Close
An employee walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore(Reuters)
An employee walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore(Reuters)

IT companies eye large deals to boost revenue

, Livemint, Bengaluru
PUBLISHED ON JAN 27, 2021 05:54 AM IST
  • HCL Technologies Ltd said it signed 13 new ‘transformational’ deals in the December quarter, aided by momentum in its digital, cloud, and products and platform segments.
Close
Workers on contract for Indian Railways, erect infrastructure for drawing electric cable lines over railway tracks for use by locomotives on the outskirts of Bangalore. (AFP)
Workers on contract for Indian Railways, erect infrastructure for drawing electric cable lines over railway tracks for use by locomotives on the outskirts of Bangalore. (AFP)

Q3 earnings trends indicate robust recovery for India Inc

By Nasrin Sultana, Livemint, Mumbai
PUBLISHED ON JAN 27, 2021 05:46 AM IST
  • Net sales of 166 BSE-listed cos grew 10.47% from a year ago during Q3.
Close
The FY21 upgrade for India is because mobility came back much faster than expected. (HT Archive)
The FY21 upgrade for India is because mobility came back much faster than expected. (HT Archive)

India’s economy to shrink by 8% in FY’21, says IMF

By Asit Ranjan Mishra, Livemint, New Delhi
PUBLISHED ON JAN 27, 2021 05:37 AM IST
  • India’s September quarter GDP estimate, at -7.5% after -23.9% in the June quarter, positively surprised analysts.
Close
YouTube, a subsidiary of Google, unveiled Shorts in mid-September, describing the videos as "a new way to express yourself in 15 seconds or less."(Reuters representative image)
YouTube, a subsidiary of Google, unveiled Shorts in mid-September, describing the videos as "a new way to express yourself in 15 seconds or less."(Reuters representative image)

YouTube shorts eyes TikTok competition with 3.5 billion daily views in India

AFP
PUBLISHED ON JAN 27, 2021 05:21 AM IST
  • The new format is seen as a way for Google to compete with Gen Z-favorite TikTok, which currently has 700 million users worldwide.
Close
SHARE
Story Saved
OPEN APP