The UT Excise and Taxation Department on Tuesday recommended registration of an FIR against a Sector 9 based firm for generating fake Goods and Service Tax (GST) invoices to fraudulently claim Rs 2.88 crore input tax credit (ITC).

The firm, HS Group was earlier directed to pay penalty of more than Rs 6 crore. The said firm is dealing in the export business of garments and other such goods.

An official of UT Excise and Taxation Department while confirming the development said that an FIR will be registered against the firm for GST scam.

Notably, the UT Excise and Taxation Department had received the details of “risky exporters” including one exporter from the city who had claimed a refund of GST to the tune of  Rs 2.88 crore.

The UT Excise team scrutinised the e-way bills submitted by the firm. The registration numbers of vehicles mentioned in the documents carrying the goods were also investigated.

On verifying e-way bills, it was found that the vehicles reported to have been used by the company for transporting goods were a car of 1971 model, and a two-wheeler (scooter).

Following this, the firm was asked to explain as to why and how these vehicles have been shown as transporting vehicles where neither a scooter can be used for transporting goods nor a 50- year old car.

After following due process, the UT Department created a tax demand of  Rs 2.88 crore under the

integrated goods and services tax (IGST) Act 2017 besides imposing a penalty of  Rs 2.88 crore with interest applicable on the firm.

Published On : 30-10-2019

Source : The Daily Pioneer