BackDGGI detects GST evasion by Kanpur firms
The transporter reportedly used to generate multiple invoices in the name of non-existent firms, all below ₹50,000 for one full truck load, to avoid generation of e-way bills
PremiumNEW DELHI : The Directorate General of GST Intelligence (DGGI) said on Friday it has detected clandestine removal of goods without paying taxes at certain factory premises in Kanpur in a search operation held this week.
The operation held on Wednesday with support from Central GST officials covered factory premises of manufacturers of fragrance and tobacco and the office and warehouse of a transporter in Kanpur, said an official statement.
The transporter reportedly used to generate multiple invoices in the name of non-existent firms, all below ₹50,000 for one full truck load, to avoid generation of e-way bills. The transporter was also collecting the sale proceeds of such clandestine supply in cash and handing it over to the manufacturer, after deducting his commission, the statement said.
The officers were able to successfully intercept and seize four such trucks outside the factory premises, cleared from the factory without invoices and e-way Bills, the statement said.
In the factory premises, during physical stock taking, shortage of raw materials and finished products was noticed as the finished products had been cleared clandestinely. A company executive admitted to having cleared the goods without GST, the statement said.
In the premises of the transporter, more than 200 fake invoices used in the past for transportation of goods without payment of GST have been recovered. The transporter has also admitted that goods were being transported without e-way bills under the cover of fake invoices and also the sale proceeds was being collected in cash, to be handed over to the manufacturer.
The agency said that huge amount of cash, wrapped in paper, has been found from certain residential premises, which is expected to be more than ₹150 crores. It proposes to seize the cash under the provisions of CGST Act, the statement said.
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