In a major fraud, a GST dealer in Haryana utilized input tax credit of over Rs 50.34 crore under GST through fraudulent entries.
In this regard, Haryana Excise and Taxation Department has lodged an FIR at Police Station Sardar in Gurugram against a fraudulent registered dealer Vipin Enterprises.
The complainant Excise and Taxation Officer has stated that M/s Vipin Enterprises utilized input tax credit of Rs 50,34,04,831 under GST through fraudulent entries.
“The GSTN number of the fraudulent dealer has been cancelled. M/s Vipin Enterprises is registered at the shop No. 16, lal Kothi, Sector-40 in Gurugram whereas in reality a Barbar shop is functioning there,” said Haryana Excise and Taxation Minister, Capt. Abhimanyu on Friday.
On the request of the Department of Excise and Taxation, the Chief Minister Manohar lal has transferred the investigation of this case, after registration of FIR, to Special Investigation Team of the Police which will be assisted by officers from the Excise and Taxation Department so that the culprits can be identified, said the Minister.
The dealer had submitted a mobile number which is answered by a different person. Truecaller app shows the number is belonging to one Rakesh Arora. The firm had also committed bogus transactions under VAT by making fraudulent claims of input tax credit on intrastate purchases in a web of operations, said he.
The Minister said that the company further showed bogus inter-state purchases to obtain 'C' forms worth Rs 27.16 crore from the Department and facilitated the selling firms for concessional rate of tax.
Capt Abhimanyu said that the officers of Excise and Taxation Department and the Tax Research Unit had identified some dealers indulging in these fraudulent activities. He added that some other dealers are also likely to be acted against and penalised shortly.
He further said that the registration certificate of the firm has already been cancelled under the Haryana GST and Central GST Act to prevent any further fraudulent activity by the dealer.