DGGI detects GST fraud worth Rs 506 crore

The Directorate General of GST  Intelligence (DGGI) has detected tax fraud of Rs506 crores in two separate cases involving bogus tax credit claims, Central Board of Indirect Taxes and Customs (CBIC) has said.

In one of the instances, the alleged fraud was Rs291 crores. It was related to using of tax credits and the assessee admitted the lapse and reversed the tax credit claim of Rs264 crores, the indirect tax authority said in an official update posted on its website. In the second instance, alleged tax fraud to the tune of Rs215 crore was detected which was related to short payment of tax on sales, and also a failure in payment of GST at an appropriate rate, CBIC said. In this case, the assessee has reversed the ineligible tax credit of Rs20 crore. These two cases were detected by the Hyderabad unit of DGGI.

The Mangalore unit of DGGI this month recovered areca nut worth Rs7 crores being transported without valid GST or e-way bill documents. In one of the largest hauls of narcotics in recent times, the Ahmedabad unit of the Directorate of Revenue Intelligence (DRI) has recovered 3,000 kg of heroin imported in the guise of talcum powder, CBIC said. The authorities have also recovered gold from a courier terminal in New Delhi and cocaine capsules from the Indira Gandhi International Airport earlier this month, CBIC added. 

Extensive data gathering from various sources, use of technology, and communication between various departments have aided revenue authorities’ compliance enforcement drive.

Central and state GST authorities are gearing up for greater coordination in their enforcement drive to boost revenue receipts given that tax rate increase is not an option at this juncture. Earlier this month, the GST Council decided to set up two ministerial panels to explore ways of boosting revenue collections. 

Source- https://www.livemint.com/news/india/dggi-detects-gst-fraud-worth-506-crore-11632308071985.html