Madhya Pradesh Tax Dept Detects 285 Firms Involved in Rs 1,150 Crore Fake Businesses
There were no business activities found on the addresses, which was mentioned in the Goods and Services Tax registration.
Representative Image. (Photo: Reuters)
Indore: Madhya Pradesh governments Commercial Tax Department has detected 285 firms involved in fake businesses of Rs 1,150 crore.
"Under a drive from July 29-31, the spot verification of 680 business firms was carried out. Of these, 285 business firms registered under the GST were found to be bogus," Commercial Tax Departments joint commissioner Sudeep Gupta told PTI on Thursday.
This means, no business activities were found on the addresses, which they mentioned in the Goods and Service Tax registration.
Gupta said the detailed investigation of these firms discovered a fake business of Rs 1,150 crore, which was carried only on paper and by issuing the forged bills in a bid to take benefits of GST's input tax credit.
"At first glance, the estimated tax evasion of around Rs 183-crore was found. However, we are still in the process of confirming these facts," he said.
Gupta said that the process for the cancellation of GST registration of these bogus firms has been initiated.
The joint commissioner said that detailed analysis has also revealed many "dummy" business firms in the state.
These firms were registered in the GST system using the identity and address of other persons rather than their actual owners so that they can take advantage of GST's input tax credits through fraudulent means.
Support the daily wage earners who have been hit the hardest by the COVID-19 crisis. Click here to contribute to the cause. #IndiaGives
The daily News18 Coronavirus COVID-19 newsletter - Get your copy here.
Recommended For You
- These 11 Memes Prove Why Masakali 2.0 Won't be Internet's Favourite WFH Anthem
- Tiger Shroff Shows Off His Chiseled Frame in This Throwback Image, Take a Look
- Samsung Galaxy S20 Ultra Review: This is The Android Superphone You Were Waiting For
- OnePlus 8 Pro Wireless Charging Feature Confirmed, 30W Wireless Charger Leaks
- Sony PlayStation 5 DualSense Controller With Adaptive Triggers is Here