Over 1,000 traders under GST scanner for GST bogus billing-Fraud

More than 1,000 traders are under the scanner of State Goods and Services Tax (SGST) department for creating fake bills.

Officials of the SGST department have raided 62 offices and shops of traders dealing in textiles, scraps, tiles, machineries, grey fabrics and yarn.

Traders have evaded taxes worth Rs 100 crore  through bogus billing.

The department is verifying documents seized during the raids.

The SGST had unearthed the biggest ever fake billing scam of Rs 6,030 since the implementation of Goods and Services Tax on Saturday in which businessmen of different cities in Gujarat used bogus invoices to evade taxes to the tune of Rs 910 crore.

The department has initiated a probe against 282 firms across the state for their involvement in the scam.

Organized players in the market obtain GST registration in the name of persons who are not traders to show fake movement of goods and generate bogus purchase invoices, which are sold to traders on commission basis.

If suppose a trader wants a bogus invoice of Rs 5 lakh, then he has to pay
commission ranging from 10% to 15% on the total invoice amount.

The actual trader would then claim input tax credit (ITC) and evade taxes. “We have also found transactions of circular billing scam to increase
turnover. Such accounts are also being investigated,” said an officer of GST
department.

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