{"id":7171,"date":"2020-07-27T22:40:47","date_gmt":"2020-07-27T17:10:47","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=7171"},"modified":"2023-10-21T16:23:58","modified_gmt":"2023-10-21T10:53:58","slug":"gst-evasion-dggi-took-action-against-3-firm-for-tax-evasion-of-rs-600-crore","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/gst-evasion-dggi-took-action-against-3-firm-for-tax-evasion-of-rs-600-crore\/","title":{"rendered":"DGGI took action against 3 firm for tax evasion"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69eaa8cec8bbb\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69eaa8cec8bbb\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/gst-evasion-dggi-took-action-against-3-firm-for-tax-evasion-of-rs-600-crore\/#GST-EVASION_DGGI_took_action_against_3_companies_for_tax_evasion_of_more_than_Rs_600_Crore\" title=\"GST-EVASION: DGGI took action against 3 companies for tax evasion of more than Rs 600 Crore\">GST-EVASION: DGGI took action against 3 companies for tax evasion of more than Rs 600 Crore<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/gst-evasion-dggi-took-action-against-3-firm-for-tax-evasion-of-rs-600-crore\/#Fact_of_the_cases_Action_taken\" title=\"Fact of the cases &amp; Action taken\u00a0\">Fact of the cases &amp; Action taken\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/gst-evasion-dggi-took-action-against-3-firm-for-tax-evasion-of-rs-600-crore\/#GST_Council_has_Measures_recommended_to_curb_fake_dealersinvoice_rackets\" title=\"GST Council has Measures recommended to curb fake dealers\/invoice rackets\">GST Council has Measures recommended to curb fake dealers\/invoice rackets<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/gst-evasion-dggi-took-action-against-3-firm-for-tax-evasion-of-rs-600-crore\/#Suspension_based_on_data_analytics_and_mismatches\" title=\"Suspension based on data analytics and mismatches:\">Suspension based on data analytics and mismatches:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/gst-evasion-dggi-took-action-against-3-firm-for-tax-evasion-of-rs-600-crore\/#Minimum_cash_payment_to_deter_dummy_businesses\" title=\"Minimum cash payment to deter dummy businesses\">Minimum cash payment to deter dummy businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/gst-evasion-dggi-took-action-against-3-firm-for-tax-evasion-of-rs-600-crore\/#Tightening_of_the_verification_process_for_new_registration\" title=\"Tightening of the verification process for new registration: \">Tightening of the verification process for new registration: <\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/gst-evasion-dggi-took-action-against-3-firm-for-tax-evasion-of-rs-600-crore\/#DGGI_of_GST_Intelligence_detects_more_than_6k_fake_ITC\" title=\"DGGI of GST Intelligence detects more than 6k fake ITC\">DGGI of GST Intelligence detects more than 6k fake ITC<\/a><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/illegally-transferred-as-ITC-credit-to-different-entities-under-the-GST-Act..jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-7172\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/illegally-transferred-as-ITC-credit-to-different-entities-under-the-GST-Act..jpg\" alt=\"www.carajput.com;GST Evasion\" width=\"864\" height=\"487\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/illegally-transferred-as-ITC-credit-to-different-entities-under-the-GST-Act..jpg 864w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/illegally-transferred-as-ITC-credit-to-different-entities-under-the-GST-Act.-300x169.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/illegally-transferred-as-ITC-credit-to-different-entities-under-the-GST-Act.-768x433.jpg 768w\" sizes=\"(max-width: 864px) 100vw, 864px\" \/><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"GST-EVASION_DGGI_took_action_against_3_companies_for_tax_evasion_of_more_than_Rs_600_Crore\"><\/span><span style=\"color: #000080;\">GST-EVASION: DGGI took action against 3 companies for tax evasion of more than Rs 600 Crore<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Three persons arrested on charges of tax evasion of Rs 600 Crore, i.e. for the issuance of fraudulent invoices without the actual supply of Rs 4,198 crores, along with illegally transferred as ITC credit to different entities under the <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">GST Act.<\/a><\/li>\n<li>There was an argument against M\/s. Reema Polychem Pvt. Ltd., M\/s. Fortune Graphics Limited, &amp; M\/s. Ganpati Enterprises, which were found to be engaged in the issuance of invoices without any real supply of goods.<\/li>\n<li>The case was identified and established by the officers on further data analytics from the case filed against one of the exporters, M\/s Anannya Exim, which was protected by the entire India Joint Operation launched by DGGI-DRI in Sept 2019 against various exporters for fraudulently demanding IGST refunds on the basis of ineligible <a href=\"https:\/\/carajput.com\/blog\/input-tax-credit-under-goods-services-tax\/\">ITC<\/a>.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/illegally-transferred-as-ITC-credit-to-different-entities-under-the-GST.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-7173\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/illegally-transferred-as-ITC-credit-to-different-entities-under-the-GST.jpg\" alt=\"www.carajput.com;GST Evasion\" width=\"996\" height=\"548\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/illegally-transferred-as-ITC-credit-to-different-entities-under-the-GST.jpg 996w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/illegally-transferred-as-ITC-credit-to-different-entities-under-the-GST-300x165.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/illegally-transferred-as-ITC-credit-to-different-entities-under-the-GST-768x423.jpg 768w\" sizes=\"(max-width: 996px) 100vw, 996px\" \/><\/a><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Fact_of_the_cases_Action_taken\"><\/span><span style=\"color: #000080;\"><strong>Fact of the cases &amp; Action taken\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>In the course of the investigations conducted by DGGI Hqrs, it emerged that the 3 companies referred to above, namely M\/s. Reema Polychem Pvt. Ltd., M\/s. Fortune Graphics Limited and M\/s. Ganpati Enterprises respectively.<\/li>\n<li>Ganpati Enterprises released invoices worth more than Rs. 4,100 Crore which is a tax amount more than INR\u00a0 600 Cr being transferred fraudulently as ITC credit to different entities.<\/li>\n<li>Above companies\/firms shall be interested in the issuing of bills without any real supply of products.<\/li>\n<li>This case was found &amp; established by officers on further review of the case filed against one of the exporters, namely M\/s Anannya Exim, which was protected by DGGI-DRI&#8217;s entire operation in India on 11.09.2019, against different exporters for fraudulently demanded IGST refund on the basis of invalid<a href=\"https:\/\/carajput.com\/income-tax-services.php\"> ITC.<\/a><\/li>\n<li>Three parties have been detained for committing offenses under the GST Act.<\/li>\n<li>The directors\/owners of M\/s. Reema Polychem Pvt. Ltd. is two of them who have been on the run and have constantly avoided presence at DGGI Offices.<\/li>\n<li>Director of M\/s AB Players Exports Pvt Ltd and the manager of various other export firms\/companies which have received IGST refunds on the basis of counterfeit invoices provided by these companies.<\/li>\n<li>All three were detained by DGGI (Hqrs.) for committing offenses, pursuant to Sections 132(1)(b) &amp; 132(1)(c) of the <a href=\"https:\/\/carajput.com\/gst\/gst-consultancy.php\">CGST Act, 2017 &amp; <\/a>ordered to be held under judicial custody by the Magistrate.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/PROSECUTION-IN-GST_page-0001-1024x725-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8413\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/PROSECUTION-IN-GST_page-0001-1024x725-1-1024x725.jpg\" alt=\"www.carajput.com; Prosecution in GST\" width=\"826\" height=\"584\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/PROSECUTION-IN-GST_page-0001-1024x725-1.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/PROSECUTION-IN-GST_page-0001-1024x725-1-300x212.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/PROSECUTION-IN-GST_page-0001-1024x725-1-768x544.jpg 768w\" sizes=\"(max-width: 826px) 100vw, 826px\" \/><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"GST_Council_has_Measures_recommended_to_curb_fake_dealersinvoice_rackets\"><\/span><span style=\"color: #993300;\"><a style=\"color: #993300;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-implications-on-discontinuation-of-business\/\"><strong>GST<\/strong><\/a><strong> Council has Measures recommended to curb fake dealers\/invoice rackets<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Finance Ministry issue new Press Release dated on dec 23, 2020, <a href=\"https:\/\/www.caindelhiindia.com\/blog\/gst-implications-on-discontinuation-of-business\/\">regarding measures recommended by GST<\/a> Council to curb fake dealers\/invoice rackets notified. Following below are the crux of press release<\/p>\n<ul>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Suspension_based_on_data_analytics_and_mismatches\"><\/span><span style=\"color: #000080;\">Suspension based on data analytics and mismatches:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Initiatives suggested by the GST Council to curb counterfeit dealers\/invoice rackets made aware<\/li>\n<\/ul>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Minimum_cash_payment_to_deter_dummy_businesses\"><\/span><span style=\"color: #000080;\">Minimum cash payment to deter dummy businesses<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Mandated by law 1 percent GST payment for all those risky dealers and fly-by-night operators who have uncommon large turnover and lack financial legitimacy<\/li>\n<\/ul>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Tightening_of_the_verification_process_for_new_registration\"><\/span><span style=\"color: #000080;\"><strong>Tightening of the verification process for new registration: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>In-Person Confirmation must be performed for GST Registration, Identification of counterfeit dealers through data analysis, and suspension<\/li>\n<li>Ease of doing business &amp; precise targeting in the interest of small business intelligently protected.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"DGGI_of_GST_Intelligence_detects_more_than_6k_fake_ITC\"><\/span><span style=\"color: #000080;\">DGGI of GST Intelligence detects more than 6k fake ITC<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Directorate General of Goods and Service Tax Intelligence detects more than 6k fake Input Tax credit cases involving more than Rs. 57,000 crore Goods and Service Tax evasion with the arrest of 500 persons From April 2020 to Sept 2023.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-25542\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/DGGI-detects-more-than-6000-fake-ITC-cases.jpg\" alt=\"Directorate General of Goods and Service Tax \" width=\"977\" height=\"1211\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/DGGI-detects-more-than-6000-fake-ITC-cases.jpg 977w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/DGGI-detects-more-than-6000-fake-ITC-cases-242x300.jpg 242w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/DGGI-detects-more-than-6000-fake-ITC-cases-826x1024.jpg 826w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/DGGI-detects-more-than-6000-fake-ITC-cases-768x952.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/07\/DGGI-detects-more-than-6000-fake-ITC-cases-800x992.jpg 800w\" sizes=\"(max-width: 977px) 100vw, 977px\" \/><\/p>\n<p>Popular Articles :<\/p>\n<ul>\n<li><span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/\">IMPACTS OF GST E-INVOICING SYSTEM<\/a><\/strong><\/span><\/li>\n<li><strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/carajput.com\/blog\/key-characteristics-for-auto-population-of-e-invoice-details-in-gstr-1-2a-2b-4a-6a\/\">Key characteristics for Auto-population of e-invoice<\/a><\/span><\/strong><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/publications\/gst-complainces-calender-nov-2020.pdf\" data-cke-saved-href=\"https:\/\/carajput.com\/publications\/gst-complainces-calender-nov-2020.pdf\">GST Return compliances calendar- Nov 2020<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><strong><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/learn\/salient-features-of-new-proposed-gst-system-in-india.html\" data-cke-saved-href=\"https:\/\/carajput.com\/learn\/salient-features-of-new-proposed-gst-system-in-india.html\">SALIENT FEATURES OF NEW GST SYSTEM IN INDIA<\/a><\/strong><\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>GST-EVASION: DGGI took action against 3 companies for tax evasion of more than Rs 600 Crore Three persons arrested on charges of tax evasion of Rs 600 Crore, i.e. for the issuance of fraudulent invoices without the actual supply of Rs 4,198 crores, along with illegally transferred as ITC credit to different entities under the &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[9004,9005],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/7171"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=7171"}],"version-history":[{"count":6,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/7171\/revisions"}],"predecessor-version":[{"id":25544,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/7171\/revisions\/25544"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=7171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=7171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=7171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}