₹5 Crore Tax Evasion Case in Telangana Traced to Identity Theft
The article reports that a Goods and Services Tax (GST) fraud case involving an evasion of ₹5 crore in tax benefits in Telangana was unearthed, with the fraudulent scheme traced back to an act of identity theft.
Key Details of the Fraud
- Fraud Amount: The scam involved the fraudulent utilization and evasion of approximately ₹5 crore in Goods and Services Tax.
- Modus Operandi: The perpetrators used the stolen identity of an individual to set up a fake company or a chain of shell companies. These bogus entities were then used to generate and pass on fake invoices for non-existent supplies.
- Objective: The primary goal of the fraud was the illegal availment and passing of Input Tax Credit (ITC), leveraging the stolen identity to mask the actual culprits and drain revenue from the government exchequer.
- Enforcement Action: Tax enforcement agencies initiated an investigation that traced the trail back to the identity theft, leading to a police complaint and subsequent action against the fraudsters.
Significance
This case highlights a common and sophisticated method of GST fraud where perpetrators use the identities of unsuspecting persons (often low-income individuals) to commit large-scale economic offenses, underscoring the need for stringent verification during the GST registration process.
Source :- Deccan Chronicle