Lucknow: Commercial tax dept to lodge FIRs against 63 bogus firms caught during raids

The commercial tax department is gearing up to lodge FIRs against the 63 bogus firms that have been caught issuing fraudulent invoices (Bills) for around Rs 400 crore turnover evading tax and illegally claiming input tax credit (ITC) on the sale of goods—the sale that never happened.
Raids were conducted on 68 firms on the basis of the input gathered by the departmental intelligence monitoring unit .(Representative image)
Raids were conducted on 68 firms on the basis of the input gathered by the departmental intelligence monitoring unit .(Representative image)
Published on Oct 17, 2018 02:48 PM IST
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Hindustan Times, Lucknow | By Brajendra K Parashar, Lucknow

The commercial tax department is gearing up to lodge FIRs against the 63 bogus firms that have been caught issuing fraudulent invoices (Bills) for around Rs 400 crore turnover evading tax and illegally claiming input tax credit (ITC) on the sale of goods—the sale that never happened.

All these bogus companies were caught during raids conducted simultaneously in seven cities on September 29.

“We will shorty lodge FIRs against all the 63 bogus companies that we have caught and also take action against the dealers who purchased invoices from them without actually taking delivery of the goods shown as sold off in the bills,” commercial tax commissioner, Kamini Ratan Chauhan said.

She said raids were conducted on 68 firms on the basis of the input gathered by the departmental intelligence monitoring unit and 63 of them were found bogus and 41 of the fake firms were found operating in Ghaziabad alone. One each were found in Agra, Noida and Gorakhpur, eight in Meerut, six in Moradabad and three in Saharanpur.

According to additional commercial tax commissioner, (Headquarters), Pradeep Kumar all the 63 bogus firms were duly registered under the GST but physically did not exit. They, he said, issued invoices to other dealer in connivance for the sale of iron and steel without actually selling the goods. “Three-four groups were operating all the bogus companies in different cities,” he said.

Kumar said these firms are estimated to have evaded tax of around Rs 70 on Rs 392 crore turnover as evident from the bills issued by them. “We will lodge FIRs under the relevant sections of the IPC etc against of them in a day or two and ITC claimed illegally by them and other dealers in the chain will also be recovered,” he added,

Under the GST a dealer is entitled to ITC input tax credit if he has purchased goods for resale. All dealers are liable to paying output tax on all the taxable sales done by them.

The commercial tax department has set up special task force (STF) under two senior additional commissioners at the headquarters here. The STF, according to sources, has been gathering intelligence on tax evasion being resorted by veracious companies with special focus on sectors like iron and steel, coal, readymade garments, hosiery etc.

“Using the input, the department is gearing up conduct more raids in various cities very soon,” sources said, adding “The departmental STF already gave a presentation on the plan to the commissioner tax commissioner last week.”

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