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UT recovers Rs 1 cr tax from bogus firm - GST Station

UT recovers Rs 1 cr tax from bogus firm

UT recovers Rs 1 cr tax from bogus firm

    CHANDIGARH: The excise and taxation department of the UT administration has recovered Rs 1 crore from a bogus city-based company registered under the GST regime.

    RD Trading Company in Burail, Sector 45, was operating only on papers — it was not found at the given address and had not been transporting any registered goods. It claimed to deal in sale and purchase of iron and scrap materials. The company was issuing fake bills to provide financial tax benefits in a wrong manner.

    “This company was operating for last around one year and we caught it three days back. A total of Rs 2.32 crore tax is estimated to be recovered from it. We have so far recovered Rs 1 crore. The company is cooperating with us,” said a senior official.

    Recently, the excise and taxation department had traced 132 out of 500 non-existing dealers allotted GST numbers for business. The department had sent notices to them and initiated the process to cancel their GST licences.

    Sources said the department has identified five more bogus companies which owe Rs 15 crore tax. Out of the total amount, the department has recovered Rs 2 crore. Out of the five, four are dealing in scrap and the other in electric goods.

    Source- Times of India.