Fake companies caught stealing GST
Can’t anything be said about what will happen in India? Now see, around 18,000 fake companies have come to light that have defrauded the exchequer not just one or two, but a total of Rs 25,000 crore. These companies were formed solely for tax evasion and when tax officials became suspicious, one revelation after another came to light.
In fact, a nationwide campaign against fake companies was recently launched. For this, a total of more than 73,000 GSTN companies were investigated. After this, when tax officials investigated based on these suspicions, 18,000 companies were found to be fake. These companies were defrauding the public treasury.
It is used to take advantage of the benefit of input tax credit.
The investigation found that these 18,000 fake companies were not doing any business or involved in the buying and selling of any type of goods and services. These were created solely to avail the benefit of Input Tax Credit (ITC). In this way, these companies were defrauding the public treasury.
read this too
See also: After the Singhania-Modi family, now the discord in the Oberoi family, a big fight is brewing between brothers and sisters!
Officials said 73,000 GSTNs were verified across the country to check fake companies. Of them, around 18,000 did not exist. These companies have committed tax evasion of approximately Rs 24,550 crore.
In the campaign launched to improve tax collection across the country, people voluntarily collected GST worth around Rs 70 crore. The second national campaign against fake GST registrations ran from August 16 to the end of October.
The first phase of this campaign against false registration ran from May 16 to July 15 last year. Then 21,791 fake companies were detected. Then a tax evasion of Rs 24.01 billion was detected.
Also read: Mukesh Ambani’s big bet will take the country’s economy out of the clutches of debt.
What is input tax credit?
Input tax credit exemption is available in the GST system. In this sense, merchants obtain exemption from the tax paid on those things purchased for their business, for the sale of which they collect taxes or use them in their own business.
If you understand it in simple language, let’s say you bought orange juice and then machine, orange and packaging material were used to make the final product. Now, in such a situation, the final tax on the orange juice packet will be charged to the customer.
But the tax already paid by the seller of the final product on the goods used to manufacture it can be claimed as input tax. In reality, its benefit occurs mainly in B2B commerce.
See also: Not only Mukesh’s wife, Nita Ambani has such a big empire of her own.
