58 fake GST cases unearthed in Chandigarh in five years: MoS
While replying to query, the minister also said that out of the ₹ 60 crore lost, the officers have successfully recovered ₹18 crore
The government exchequer bore a loss of ₹ 60 crore between 2018 and 2023, owing to fake Goods and Services Tax (GST) invoices, Minister of State for Finance Pankaj Chaudhary said in the Parliament on Monday.
While replying to query, the minister also said that out of the ₹60 crore lost, the officers have successfully recovered ₹18 crore. Additionally, as part of their efforts to combat this fraudulent practice, two individuals involved in these cases have been apprehended and are currently under arrest.
The new Goods and Services Tax (GST) tax system was implemented in India in 2017 to make the indirect taxation system simpler, replacing multiple indirect taxes such as VAT, service tax, etc. However, with the spread of the GST network and registrations, there has also been a rise in cases of fake GST invoices being issued by fraudsters.
A senior official of the UT excise and taxation department said that in most cases, fraudulent taxpayers are engaged in passing off fake input tax credits (ITC). They detected non-functional and bogus taxpayers who were not found at their principal place of business and were indulging in fake transactions, causing a loss of ₹60 crore to the government exchequer. In some cases, vigilance is already conducting an inquiry, the officer added.
Chandigarh Beopar Mandal (CBM) president Charanjiv Singh, meanwhile, said traders are being harassed with notices. “As far as fake bills are concerned, some traders from Delhi and Mumbai have generated those bills, and traders have even paid for goods and also paid GST on those bills,” he said.
