Around 115 fake firms spread over in 9 GST Commissionerates have been detected with the help of data analytics, and a Chartered Accountant-in-making, Mr. Prince Manish Kumar Khatri who is a third year student & partner of a CA firm has been arrested in Ahmedabad for registering fake firms.
Khatri was generating illegal availment and wrongfully passing on of Input Tax Credit (ITC) to the tune of Rs. 50.24 Crores.
Fin Min sources said that the Directorate General of GST Intelligence (DGGI) is keeping non-intrusive but a close watch through rigorous data-mining and data analytics on such dubious and unscrupulous elements who in the garb of professionals take up illegal availment of ITC and evasion of GST. Further investigation is under progress.
Out of these 115 fake units, 49 fall under Ahmedabad North Commissionerate; 27 under Vadodara-II Commissionerate; 15 under Bhiwandi Commissionerate; 12 under Gandhinagar Commissionerate.
Besides, 5 units fall under Ahmedabad South Commissionerate; 3 under Jodhpur Commissionerate; 2 under Vadodara-I Commissionerate; 1 under Thane Rural Commissionerate and 1 unit under Bhavnagar Commissionerate.
Now the use of Aadhaar in GST registration will bring better control over such unscrupulous professionals who try to create bogus/fake firms for GST evasion by fraudulent availment and passing on of ITC," the source said.
The source further said law is being further tightened to have better control on such malpractices.
Moreover, the government is considering putting such dubious firms under risk category like in case of export firms, and can block their refunds, besides taking other appropriate legal actions, if found involved in deceitful practices.
(With inputs from agencies)
First Published: Oct 23, 2020 4:56 PM IST
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