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Tax consultant floats bogus firm to claim ITC, nabbed - GST Station

Tax consultant floats bogus firm to claim ITC, nabbed

Tax consultant floats bogus firm to claim ITC, nabbed

    VADODARA: The Central Goods and Services Tax (CGST) officials have arrested a tax consultant for circulating fake invoices of Rs 582 crore. The consultant identified as Hiten Mandaliya floated bogus firms to claim input tax credit (ITC) worth about Rs 20 crore. GST officials said that mastermind of the entire crime was in Ahmedabad.

    According to the GST Vadodara I, the officials had received specific input following which they booked Mandaliya who runs Datar Enterprise. “Datar Enterprises circulated fake invoices of Rs 582 crore of various commodities like gold, silver, copper and cement without any physical movement of goods,” a release by GST official said.

    “Bogus purchase invoices of Rs 274 crore were received and bogus sales invoices of Rs 308 crore were issued for commodities like gold, silver, copper, cement and labour by Datar Enterprises to many firms in Vadodara and Ahmedabad to avail and passing of fraudulent input tax credit amounting to Rs 20 crore without any physical/actual movement of goods,” the release stated.

    “Further, follow up searches were carried out at the premises of some Vadodara-based purchasers of bogus invoices who admitted to have availed input tax credit without any receipt of goods and services from Datar Enterprises at the instance of Hiten Mandaliya,” GST officials said. Mandaliya was arrested and is now in judicial custody,

    A GST official said that Mandaliya’s fraudulent activities were evident as he used to get invoices for purchase of silver and then supply gold, copper and cement which is simply not possible.

    “He took credit in 5%, 18% and 28% categories. Mandaliya has given names of four other such firms in Ahmedabad and all of them are being run by one individual,” the official added. The possibility of other such fake firms issuing bogus invoices can’t be ruled out, GST officials said.

    This is the second big case unearthed by the Vadodara CGST officials in last few days. Last week, an illegal factory manufacturing gutkha was busted from Halol GIDC by CGST and evasion of GST and other taxes worth Rs 70 crore was unearthed.

    Source- Times of India.

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