Show begins from Karnataka: Arrest for GST Evasion


Show begins from Karnataka: Arrest for GST Evasion
*GST Evasion: First Arrest Recorded in Karnata*
The Enforcement Wing of Commercial Taxes Department, Karnataka on Wednesday arrested Proprietor of M/s A R S Enterprises based on credible information gathered at the time of inspection under the provisions of the GST Act, 2017 and for issuing bogus tax invoices worth Rs 45.94 Crore thereby evading GST amounting to Rs.8.16 Crore. The accused, Hameed Rizwan Parthipady Ismail, Proprietor, Aged 28 years, residing at Mathikere, Bengaluru -560054 had obtained registration under the GST Act, 2017 in the trade name of M/s ARS Enterprises, No.72/6, Ganigarahalli, Near new Basaveshwara Layout, Chickbanavara Post. On inspection, it was observed that, the taxable person has not received any goods or services and has claimed input tax without any purchases to avoid payment of tax. It is also coming to light that the taxable person had issued invoices for outward supplies to enable various purchasers to claim input tax credit without supply of goods or services whatsoever and thus facilitated to claim Input Tax Credit (ITC) fraudulently. Further, it was found that the Taxable Person has issued tax invoices without supply of goods or services leading to wrongful availment or utilization of input tax credit by the purchasing dealers which is a punishable offence under the CGST Act. On verification of the data as depicted in the Data Analytics Software (GSTPro) of the Department, it was observed that the taxable person has issued tax invoices without supply of goods or services and indulged in issuance of bogus tax invoices facilitating the purchasing dealers to claim bogus Input Tax Credits (ITCs). As per returns uploaded by Taxable Person in GSTR-1 and GSTR-3B filed for the periods from July 2017 to July 2018, the total value involved in the said tax invoices is Rs. 45.94 Crore and corresponding output tax involved is Rs. 8.16 Crore. The dealer has been produced before the Honorable Special Court for Economic Offences and the Judicial Magistrate has ordered the dealer to Judicial Custody until 20-09-2018. “The compliance efforts of the Department will continue against fraudulent dealers and strict action will be taken as per law. This is the first arrest by the Commercial Taxes Department in Karnataka under GST,” the department said in a statement.

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