Tsunami of Input Tax Credit Scams coming
3600 cases worth 15000 crores of gst evasion have been reported where GST Input Tax credit was the mechanism. If this is not checked at the earliest, we will have a serious gst evasion criss. This circle should discuss, report and alert the Govt about how fraud is happening.
The MOS finance made a reference to ‘briefcase companies’ who sell goods enabling the recipient to take input tax credit and vanish after 2 to 3 months. He observed that if such companies were not traceable, then the recipient who had used the input tax credit would be liable to pay the tax even though he might have paid the tax to the seller.
A case in the scrap iron and steel business busted in Bangalore in November 2018 illustrated that the modus operandi where a single person registered 20 fake companies on the GST network.“Their modus operandi involved creating/floating fake companies at fake/wrong addresses, issuing fake GST invoices and generating fake e-way bills, with fake/wrong vehicle registration details without supply of any goods. The fake companies are floated with the intention to fraudulently pass on input tax credit by issuing fake invoices without any supply of goods causing loss of exchequer”
In this single case fake invoices worth Rs 1,200 crore for scrap iron and steel had been generated to avoid GST liability of Rs 200 crores. This is just one of the many instances of the input tax credit scam. more
The MOS finance made a reference to ‘briefcase companies’ who sell goods enabling the recipient to take input tax credit and vanish after 2 to 3 months. He observed that if such companies were not traceable, then the recipient who had used the input tax credit would be liable to pay the tax even though he might have paid the tax to the seller.
A case in the scrap iron and steel business busted in Bangalore in November 2018 illustrated that the modus operandi where a single person registered 20 fake companies on the GST network.“Their modus operandi involved creating/floating fake companies at fake/wrong addresses, issuing fake GST invoices and generating fake e-way bills, with fake/wrong vehicle registration details without supply of any goods. The fake companies are floated with the intention to fraudulently pass on input tax credit by issuing fake invoices without any supply of goods causing loss of exchequer”
In this single case fake invoices worth Rs 1,200 crore for scrap iron and steel had been generated to avoid GST liability of Rs 200 crores. This is just one of the many instances of the input tax credit scam. more
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All financial matters must be related with Aadhar.That is the only option to reduce/eliminate financial crimes.Further punishment must be severe and timely. more
Jan 18
Aadhar Linkage to be mandated for all Loans from Banks, Financial Institutions; Deposits; Donations; Shares ; Mutual Funds ; Insurance . more
Jan 18
Yes attempts to steal will continue, so also the attempt to curb stealing, so we all need to play our role as responsible citizens to report any tax evasion coming to light too more
Jan 11
Aadhar linkage and Bank through transactions shall be Mandated while penalties, imprisonment to be implemented in 30 to 90 days. more
Jan 12
When even a big hero like Carlos Ghosn, head of Renault-Nissan, is behind bars, to be tried for stealing money from the company, we can expect that always people will try to steal. Now there are are more and more trails of records where they can be caught by people who are beyond their reach of contacts. So let us celebrate that a long list of people is being caught because of proper rules as well as well designed systems more
Jan 11
A system has to be perfected over a time by plugging loopholes. But punishment for violation of provision in the system should be very heavy affecting the concerned business itself and people implementing the rules should be merciless and non-corruptable. more
Jan 11
As long our character does not change, we will always put all our efforts, wisdom and strength to avoid any out flow of money from our pocket. Why not at the stage of making rules, provision of stringent penalty is not made? It is hard time that we understand that our mind is very fertile in finding loop holes in any system. more
Jan 11
