DGGI unearths undervalued goods transportation, another CA held
New Delhi The Directorate General of GST Intelligence (DGGI), in its nationwide drive against fake invoice frauds since the second week of November, has also unearthed cases of GST evasion by way of transporting under-valued and unaccounted goods, besides arresting 140 persons including 5 chartered accountants and a woman.
So far, the DGGI has booked 1,488 case against 4,839 fake entities, said Sources in the Department of Revenue (DoR).
DoR Sources revealed that some companies of Delhi and Himachal Pradesh are under investigation for under-valuation of goods and its transportation through transporters of Ludhiana and Jalandhar.
During searches and surveys, the field formations have seized unaccounted goods as well. Ludhiana Golden Transport Service of Ludhiana and MNK Transport Company of Jalandhar are actively involved in evasive practices of transporting under-valued goods.
During the search at Ludhiana Golden Transport Service, consignments of different type of goods were found in the premises. On examining the documents such as invoices, and e-waybills available at the premises, the goods were found undervalued.
DGGI sources said that a number of transporters too are involved in this kind of GST evasion activities through under-valued goods transportation and further investigations are required to ascertain the evasion to the exchequer.
Sources said that the preliminary investigation done so far shows undervaluation of goods by 20 to 30 per cent and a number of unaccounted goods, which have been seized.
Searches were conducted at the transporters' premises in Ludhiana, Jalandhar and Delhi and also simultaneously at the premises of the suppliers of these goods in Delhi and Himachal Pradesh at various locations. Goods mainly involved were footwear/shoes, plastic slippers, tobacco, shaving foam, etc.
Meanwhile, GST officials of DGGI, Mumbai West Commissionerate Zone, arrested chartered accountant Chandra Prakash Pandey of C.P. Pandey & Associates for circular trading and running 50 fake firms to run fake invoice racket to avail and pass on input tax credit (ITC).
DoR Sources said that on the basis of specific intelligence, GST officials conducted investigation and found that Pandey, CA & Partner have created numerous companies in the name of his family members which were indulging in issuance of invoices without any actual supply of goods/services. Also, he was enabling other companies to avail ITC on invoices for which no goods/services were supplied.
Sources said that this modus operandi enabled buyers/other companies to avail ineligible ITC besides inflate the turnover to obtain bank loans.
So far, five ahartered accountants have been arrested so far in the nationwide drive across the country for circular trading, availing and passing on of ITC fraudulently and fake invoicing and bogus billings.