NEW DELHI: Delhi government has launched a major crackdown against bogus dealers registered under the Goods and Services Tax (GST) and involved in issuing fake invoices.
Deputy chief minister Manish Sisodia, who also holds the charge of the finance department, has ordered the drive after several cases of fraud have been detected by the trade and taxes department, which is responsible for the implementation and enforcement of GST Act in Delhi.
Delhi government said in a statement on Wednesday that Sisodia had asked the department to identify the bogus dealers and take the most stringent action possible against them.
The department has already identified at least 56,000 suspicious dealers on various risk parameters and the GST inspectors have carried out field inspections and verification of 16,141 so far, an official said. “Out of it, 4,618 dealers have been found to be non-existing and bogus. These people got the GST registration to defraud the government exchequer,” according to the statement.
The registration of 1,282 dealers has been cancelled and show-cause notices have been issued to another 3,221, said the official. The input tax credit amounting to over Rs 128.30 crore concerning 1,526 bogus dealers has been blocked, the statement mentioned.
“The bogus entities engaged in such activities also defrauded banks by deflating turnovers and money laundering. These companies do not undertake actual trading but involve in only paper transactions without physical delivery of goods or services,” the official clarified.
The department has also directed the tax officers to recover the entire amount of tax, interest and penalty from such dealers besides taking legal and criminal actions against them, the statement added.
Source- Times of India.