News Analysis India

Tag: CGST

  • CGST finds Input Tax Credit fraud of Rs 81 crore; Navi Mumbai firm director held

    By PTI

    THANE: The CGST Mumbai Zone has arrested the director of a Navi Mumbai-based firm that allegedly availed and passed on Input Tax Credit of Rs 81 crore using bogus invoices to the tune of Rs 479 crore, an official said on Monday.

    A CGST release said searches were conducted at various locations acting upon intelligence garnered by deploying data analytics tools, which found that Fantasia Trade Pvt Limited was allegedly indulging in irregularities under section 132 of the Central Goods and Services Tax Act, 2017.

    The director of the firm was arrested on February 18 and remanded in judicial custody for 14 days, the release stated.

    The release said CGST Mumbai Zone had, under a special drive, booked more than 730 cases of tax evasion, detected tax evasion of Rs 6,380 crore, recovered around Rs 700 crore and arrested 56 persons in the last six months.

  • Unaccounted cash worth over Rs 177 crore seized from pan masala manufacturer in Kanpur

    Express News Service

    LUCKNOW: A total of Rs 177.45 crore cash was recovered and seized from the premises of Kanpur’s Perfume and Pan Masala manufacturer Piyush Jain, following raids conducted by the Directorate General of GST Intelligence (DGGI) officials of the Ahmedabad unit of the agency for almost 48 hours.

    As per the highly placed sources, the counting of cash recovered after the joint raids continued till past Friday midnight. Later the team of officials took Piyush Jain along for further interrogation over the alleged unaccounted wealth recovered from his premises in Kanpur and Kannuaj. Jain owns the firm named Trimurti Fragrance Pvt Ltd, Kanpur, and is also the manufacturers of Shikhar brand Pan Masala and Tobacco Products.

    However, the sources of the Central Board of Indirect Taxes and Customs (CBITC), the apex body of investigation agency Directorate General of GST Intelligence (DGGI), which initiated the raids, called it the biggest cash seizure in history. Sources claimed the DGGI is evaluating the alleged tax evasion by the party who is under investigation.

    The official sources claimed that the cash recovered and seized from the search under the provisions of section 67 of the Central Goods and Services Tax (CGST) Act was deposited in the State Bank of India. 

    “Most of the currency is of Rs 500 denomination. Some are of Rs 2000 denomination,” the top government source said.

    Claiming that the pan masala company had committed huge tax evasion and the wealth recovered during the raids as part of sales proceeds and it was kept hidden at the residence of the trader.

    Currently, assorted tobacco items, pan masala are among the products that attract the highest GST rate of 28 percent and also compensation cess. The sources claimed that the DGGI team is evaluating the magnitude of tax evasion by matching the sale of the pan masala.

    An amount of Rs 3.09 crores has been recovered so far towards tax due with Trimurti Fragrance.

    In fact, the whole search operation was conducted by the Ahmedabad unit of DGGI with the support of local officers.

    “No other agencies are involved in the operation as reported by in some media reports,” said sources.

    Sources said that some more firms including transporter M/s Ganpati Road Carriers were also under the scanner of the raid agencies. The premises of the transporter was also raided and the agencies found over 200 fake invoices, used in the past for transportation of goods without payment of GST.

    The transporter had also admitted that goods were being transported without e-way bills under the cover of fake invoices. He also admitted that the sale proceeds were being collected in cash, to be handed over to the manufacturer, the sources said. 

    Not only an amount of Rs 1.01 crores in cash was seized from the possession of the

    transporter but four trucks were also seized outside the factory premises.

  • November GST collections at Rs 1.05 lakh cr, crosses Rs 1 lakh crore mark 2nd time since April

    The gross Goods and Services Tax (GST) revenue collected in the month of November 2020 stood at Rs 1,04,963 crore, informed the Ministry of Finance here on Tuesday.

    “The gross GST revenue collected in the month of November 2020 is Rs 1,04,963 crore, of which CGST is Rs 19,189 crore, SGST is Rs 25,540 crore, IGST is Rs 51,992 crore (including Rs 22,078 crore collected on import of goods) and Cess is Rs 8,242 crore (including Rs 809 crore collected on import of goods). The total number of GSTR-3B Returns filed for the month of November up to 30th November 2020 is 82 lakhs,” said the ministry in a statement.

    The ministry said in line with the recent trend of recovery in the GST revenues, the revenues for the month of November 2020 are 1.4 per cent higher than the GST revenues in the same month last year.

    It said that the government has settled Rs 22,293 crore to CGST and Rs 16,286 crore to SGST from IGST as regular settlement. The total revenue earned by central government and the state governments after regular settlement in the month of November 2020 is Rs 41,482 crore for the CGST and Rs 41,826 crore for the SGST.