Business Bureau :
Nowadays the GST Department is vigilant and detecting large number of fake GST invoice transactions and the persons found involved in these transactions will have to face the music and would be strictly dealt with, said GST and Custom expert from Mumbai advocate Sanjay Dwivedi while addressing a largely attended webinar on ‘Frauds & Fake GST Invoices’ organised by the COSIA Vidarbha, Chapter.
Dwivedi said, there are various types of GST transactions which tantamount to fraud viz., supply of goods or service without invoice, invoice without supply of goods, a raises invoice to B, B to C, C to D and so on, but the goods do not move and purpose seems to increase the turnover, advance issue of invoice and in circular transaction original supplier vanishes. He said, the officers have wide powers to detect frauds and also to recover the defaulted tax with heavy penalty. Powers to detect fraud includes right to search the premises, stock registers, gate entry, physical stock verification and the other party’s records without notice or search warrants. The department can make recovery through seizure and attachments of properties (movable and immovable both), business premises, bank accounts, lockers, outstandings from debtors and personal belongings of owners / directors.
“They will have a first charge on all the property of business houses as well as proprietor or directors,” he said. Heavy penalty can be levied up to 200 per cent of tax amount or in certain cases upto 50 per cent of the value of goods in certain cases and / or imprisonment up to 5 years if the tax liability is of Rs 5 crore or more, upto 2 years for tax liability between Rs 2 to Rs 5 crore and 1 year if the tax liability is more than Rs 1 crore but less than Rs 2 crore. At the outset, Mayank Shukla, Chairman of COSIA, Vidarbha Chapter made the introductory remarks and briefed the delegates about the various initiatives being taken by COSIA. CA Julfesh Shah, Vice- Chairman, COSIA moderated the session, He said, the issue of fake GST invoice is increasing day by day and frauds that are being detected can lead to stringent punishment including cancellation of GST registration. ‘Innocence is not in any way an excuse for such fraudulent transactions,” he added.
Core Committee Member Pranav Ambaselkar conducted the Q&A session. Present were Madhusudan Roongta, President Chandrapur MIDC Assn, Sandip Parikh, Vice-President COSIA, Ninad Jayant, General Secretary, COSIA, Nitin Khara, CMD of Confidence Group, Sudarshan Shende, CMD, of Vithoba Group, Sahaj Patel, Director, JDS Group, CA Sanjay Agrawal, Secretary, ICAI, Nagpur, CA Kailash Jogani, CA Ritesh Mehta, CA Sachin Jajodia and others.