Since the execution of Goods and Services Tax (GST) in July 2021, Ahmedabad and Surat have turned into centres for bogus billing in Gujarat. The trap of unlawful transactions has additionally spread quickly to industrializing locales like Bhavnagar, Rajkot, Morbi and Gandhinagar.
Though it has spread quickly, Ahmedabad and Surat still account for 58 per cent of the Rs 3,094 crore taxes involved in bogus billing rackets since June 30, 2021, the state government stated in the recently concluded monsoon session of Gujarat Assembly.
In bogus billing, Ahmedabad reported the highest tax involved amounting to Rs 971 crore from t250 firms which were followed by Surat that was Rs 789 crore from 196 firms. Bhavnagar has the third most elevated quantum of tax (Rs 433 crore) involved, where a sum of 104 trading units is under a microscope. The bogus billing racket has been reported in 18 of 33 districts in Gujarat.
However, the public authority in its composed answer expressed that no government authorities have been found associated with the fake charging cases till June 30, 2021, the circumstances changed a month later.
Bhavnagar turned into the only spot in Gujarat where the state government stepped in and moved 36 authorities from one office of the SGST division regarding a Rs 1,000 crore counterfeit charging case uncovered in July. Two of these SGST authorities including a deputy commissioner were suspended for their alleged involvement in the situation.
The information posted in the Gujarat Assembly additionally expresses that 1,037 trading and business firms were engaged with producing counterfeit bills and smaller industrial areas like Rajkot (Rs 333 crore), Morbi (Rs 126 crore) and Gandhinagar (Rs 104 crore) arose as communities for generation of phoney GST bills.
The bogus billing racket involves a complex network of individuals who use these fake bills to illegally claim Input Tax Credit.
For example, in the 2020 case including Paresh Chauhan from Ahmedabad, reports were sourced from guileless people and the equivalent was utilized for enrollments on GST gateway. As the whole framework is on the web, the spot confirmation of the enlisted address was not done (it has been made mandatory at this point).
Paresh was arrested at the start of 2020 which is among the first fraud cases in India. In the Rs 900 crore, bogus billing racket was being worked out of leased premises in Ahmedabad city.
Some SGST authorities said that the bogus billing racket not only work out of leased premises but also from premises belonging to some associate remotely connected with the conspirator.
Authorities said apart from those organizations engaged with cheating duty, there are organizations that attempt to utilize the sham bills to swell their turnover.