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Chandigarh

Posted at: Aug 7, 2019, 7:44 AM; last updated: Aug 7, 2019, 7:58 AM (IST)

132 bogus firms to lose GST number

132 bogus firms to lose GST number

Tribune News Service

Chandigarh, August 6

The Excise and Taxation Department has started the process to cancel GST numbers of 132 firms, which were found to be bogus.

Sources said during a survey carried out last month, the department had found that some of these firms had shown fake addresses while others were found to have submitted fake documents.

The survey was carried out after the department unearthed the biggest fake billing scam in the city under the GST regime.

The department identified 17 bogus firms, which were involved in a scam of around Rs 70 crore.

The bogus firms generated fake bills to fraudulently claim input tax credit (ITC). The bogus bills so generated were used to fraudulently claim ITC from the department without actual movement of goods. 

Sources said after unearthing the scam, Excise and Taxation Commissioner Mandeep Singh Brar had directed the department to conduct a survey of 440 newly registered dealers under the GST. As many as 132 of them were found to be bogus.

Meanwhile, companies not issuing bills to customers are also on the radar of the Excise and Taxation Department. 

Sources said excise teams had started a survey of such firms in various markets of the UT. The department is scrutinising the documents taken from such firms. In case of any discrepancy in billing, penalty will be imposed on them. 

Modus operandi

  • The bogus firms generated fake bills to fraudulently claim input tax credit (ITC). The bogus bills so generated were used to fraudulently claim ITC from the department without actual movement of goods

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