SEPARATE teams of CGST Department conducted inspection of three jewellery shops and registered fake Input Tax Credit (ITC) amounting to Rs 20 Lakh. The inspections were conducted under Section 67(1) of the CGST Act, 2017 by Directorate General of Analytics and Risk Management (DGARM), CGST Jabalpur. The action was aimed at verifying the money trail and assessing suspicious bank transactions.

 

The inspection was carried out at the business premises of M/s Navkar Jewellers, M/s Nitesh Ritesh Jewellers and M/s Rajesh Jewellers. Certified valuers from the Income Tax Department assisted the CGST team during the inspection. During the inspection, discrepancies in stock were detected at the jewellery establishments at M/s Navkar Jewellers, a shortage of 437 grams of gold and 818 grams of silver was found and applicable tax was recovered as per rules.

 

At M/s Nitesh Ritesh Jewellers, a shortage of 826.9 grams of gold and 64.5 kilograms of silver was detected and the due tax amount was recovered accordingly. Similarly, at M/s Rajesh Jewellers, excess stock of 345 grams of gold and 166 kilograms of silver was found, on which applicable tax was also collected as per legal provisions. The entire inspection process was completed in a peaceful manner.

 

A total revenue of Rs 20 lakh was recovered during the operation, corresponding to a taxable value of around Rs 5.75 crore at the rate of 3 per cent. In addition to revenue recovery, CGST Department also successfully identified the modus operandi adopted in the fake ITC case.