GSTR-2A, the GST return form which was introduced by the government in order to get the tax return simplified for all the purchase inwards of a business for matching purpose with the supplier. However, as there is always a chance of fraud in the financial departments and in this context, the first case has been detected under which two accused has been arrested in Karnataka as soon as the matter came into light and became evident.
The fraud got detected when the data analytics software (GSTPro) showed signals for some suspicious transactions against ARS Enterprises.
The commercial taxes commissioner MS Srikar said that two Bengaluru-based businessmen were involved in this fraud. He further informed that the first one is Hameed Rizwan Parthipady Ismail, the owner of ARS Enterprises in Mathikere and the other Jeetendra Kantilal Gandhi, who acted as a customer for Hameed Rizwan and is the owner of Gandhi Iron and Steel Company in Kalasipalyam.
Both of them tried to generate fake invoices worth Rs 8.16 Crore to claim input tax credit. Further investigation is being carried by the enforcement wing of the Commercial tax department. The Tax commissioner expressed his happiness and declared the probe as a major development in the area of GST compliance.
Detailed Description of the Probe:
The additional commissioner and assistant commissioner of the Law enforcement team did the physical inspection of the businesses of both the parties. They found that the main accused Ismail had issued a fake invoice of RS. 45.94 Crore to his customers in the time span of 13 months and there is no evidence of any sale taking place. Jeetendra Kantilal Gandhi, the other accused, pretended to be one of his customers. Along with him, a number of Ismail’s fake customers had claimed ITC from the department.
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In the statement given to the press, officials of the tax department said that the data based intelligence is the only key to keep the department compliant.
The Tax officials in a different case have charged city-based paint and decoration company for not paying tax for months and the penalty amount is now Rs. 53 Crore. As per the tax official, the penalty has been charged only after the verification of document seized from the company.
It is better suggested that the taxpayer must not indulge in any such kind of activities bringing legal troubles for him. As per the laws, every individual liable for tax payments must pay his/her credits to the government on time. SAG Infotech offers Gen GST software for a complete error less tax compliance software for all kind of taxpayers.
