Indore: The operators of five out of eight bogus companies have deposited over 1.50 crore with central goods and services tax department. This follows department’s crackdown on bogus companies who availed benefit of Input Tax Credit (ITC) on the basis of fake invoices.
Last week, the officials of Central Goods and Service Tax (CGST) commissionerate conducted the searches on bogus companies, which dealt in wheat, gram and other cereals on paper. The companies are located in Chhawani and Palda area.
Official sources informed on Friday that the investigation has revealed that certain traders used their servants’ documents showing them as their employees to trade in soybean, other agricultural produce and other commodities. They not only issued bogus bills of firms established in their name but also drew ITC.
Taking action, the department has begun to recover ITC money along with interest and penalty from traders. So far, about Rs 1.50 crore have been deposited in the government account by merchants.
Banwari Brokers has emerged as the mastermind of racket whose operator Vijay Aggrawal is alleged to be on the run. Despite repeated calls of department, he has not deposed before the department.
Under the guidance of CGST commissioner Nirav Kumar Mallick and supervision of joint commissioner Virendra Kumar Jain, teams led by deputy commissioner Dr Deepak Saini, superintendent of preventive branch of headquarters Anil Acharya had conducted search on the companies involved in the racket.
The department has instructed traders and racketeers that they should take the responsibility of drawing ITC wrongfully and immediately deposit the amount with penalty and interest to avoid search and other proceedings under GST Act, sources added.
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