Bihar: Raids reveal tax evasion worth ₹48.45 crore

The commercial taxes department on Tuesday raided 35 firms dealing in areca nut (betel nut), iron and steel, edible oil and coal across Bihar and detected tax evasion worth ₹48

The commercial taxes department on Tuesday raided 35 firms dealing in areca nut (betel nut), iron and steel, edible oil and coal across Bihar and detected tax evasion worth ₹48.45 crore by way of claiming input tax credit (ITC) through fake invoices, according to a press release issued by the department.

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Out of the 35 firms, 25 were bogus entities working only on paper with the sole aim of claiming ITC through fake invoices and e-way bills officials said, adding that these firms together had done business transactions worth ₹574 crore in last few years, officials said.

“The biggest revelation has been about three bogus firms engaged in the trade of areca nutbut used for generating e-way bills and illegal bill trading,” said a senior tax officer engaged in the raids.

Dr Pratima, commissioner cum secretary, commercial taxes department, said eight firms were detected in today’s raids which failed to show proper book of records and were engaged in wrongly claiming ITC. “We are working on revenue leakage and all those involved in illegal trade would facie action,” she said

After the implementation of goods and services tax (GST), the commercial tax department has detected a trend of tax evasion by non-existent business firms which apparently act as fronts for clandestine ferrying of goods and claiming ITC.

“In recent weeks, we have unearthed a large number of fake firms and are tracking their actual owners through mobile calls and tax receipts. All the operators of the fake firms would be facing heavy penalty and punitive action,” said another officer.