3 GST fraud cases in Ambala

Tribune News Service

Ambala, July 8

The Excise and Taxation Department has detected three cases of GST fraud of Rs 4.86 crore, 1.69 crore and 59.25 lakh, respectively, in Ambala City.

The suspects had obtained GST numbers by getting their firms registered on fake addresses.

In the first case, Poonam, ETO, State Tax Ward No. 8, in her complaint to the police, has stated that Sunil Kumar from Fatehgarh of SK enterprises had obtained GST number on fake address. The suspect had shown the address to be Baba Hira Nagar, Ambala City, while no such firm was in operation on this address.

From August 2018 to February 2019, the suspect issued sales bills of over Rs 19.03 crore. During this period, e-way bills of Rs 27.04 crore were issued to traders of Punjab and Haryana, who had taken the benefits of input credit, while the firm had only submitted Rs 1,955 as tax. The suspect has caused a loss of Rs 4.86 core to the state exchequer.

In second case, KS Barar, ETO, State Tax Ward No. 7, stated that Vakil Sharma got a GST number on fake documents and showed his steel business at the Dutt market in Durga Nagar, while his actual address was Shahu Post, Bihar.

During verification, it was found that no such firm in Ambala City was in operation and the phone number was also incorrect. From November 2018 to March 2019, the suspect has issued sales bills of over Rs 10.03 crore. During this period, bills and e-way bills of over Rs 9.44 crore were issued to the traders of Rajasthan and Punjab. The purchasers have also taken the benefits of input tax credit, while the firm had only submitted Rs 1,373 as tax. The suspect has caused a loss of Rs 1.69 crore to the state exchequer.

In third case, Dhanpati Bharadwaj, ETO, State Tax Ward No. 10, stated that Bawa Singh, a Punjab resident, had obtained a GST number on fake documents and showed his firm in the name of Barfani steel in Ambala City. During verification, the department found that the person belongs to Punjab and there is no such shop in Ambala city.

Even the phone number provided during the registration was found to be incorrect.

The suspect had issued bills and e-way bills worth Rs 3,29,18,774 from June 2018 to October 2018, to Punjab and Haryana traders. The purchasers have also taken benefits of the input tax credit, while no tax and returns were submitted by the firm during this period. The suspect has caused a loss of Rs 59.25 lakh to the state exchequer.

ETO Bhardwaj said: “The matter came to the notice of the department following which a case has been registered so that the loss can be recovered from the accused.”

Three separate cases have been registered under Sections 420, 467, 468, 471 and 120-B of the IPC at the Ambala City police station.