A fake GST invoice fraud, involving several steel and infra companies, has come under the scanner of the Enforcement Directorate (ED). ED has written a letter to director-general of Goods and Services Tax (GST) intelligence department as well as the anti-evasion wing of GST commissionarate of Hyderabad seeking information on the companies involved in the scam.
Sources said DGGI GST was asked by ED to share all relevant details of the fraud to enable them to examine the money laundering aspect. GST officials were yet to give details of the shell firms, steel companies which generated fake invoices and the infra companies that obtained fake invoices and fraudulently availed input tax credit.
Companies linked to Sujana Group were also being probed by the GST commisisonarate anti-evasion wing. Incidentally, Bollineni Srinivas Gandhi, who was in charge of Begum Bazar divisional officer of GST, has been posted to the anti-evasion section of Hyderabad GST commissionarate. Gandhi, who was dealing with cases against YS Jaganmohan Reddy, would now probe cases against Sujana Group companies.
So far in the fake invoice fraud case, a tax consultant, N S Iyengar, was arrested by the GST anti-evasion wing. The arrest of Nagari Jagan Satya Sridhar Reddy, director of Bharani Commodities Private Limited, Nagarjuna Hills, has led the GST anti-evasion wing to focus on Sujana Group. It was alleged that Bharani Commodities and seven other companies had raised fake invoices worth Rs 1,284 crore and availed around Rs 225 crore illegal input tax credit.
G Srinivasa Raju, director of Sujana, said he was confident that he would not be arrested despite the Telangana high court refusing to grant him relief. “No case is going on against our company. As a precautionary measure to safeguard myself from indiscriminate acts of the GST department, I approached the high court. The arrested tax consultant is a retired employee of our group. I don’t know the reasons behind his arrest. I know it is linked to Bharani Commodities, whose MD was arrested sometime back. Infiniti Metals is also under investigation,” Raju told TOI.
Meanwhile, eight cases were reported in three months and GST fraud involving several companies could be over Rs 3,000 crore.
The companies are allegedly involved in circular trading without physical supply of goods and providing services.
Sources said DGGI GST was asked by ED to share all relevant details of the fraud to enable them to examine the money laundering aspect. GST officials were yet to give details.
Source : https://timesofindia.indiatimes.com/city/hyderabad/ed-seeks-details-of-fake-gst-invoice-scam-for-probe/articleshow/69258538.cms