GST Dept. Unearths Fraudulent Billing Case in Ludhiana Worth Crores, Furnace Industry Raises GST Concerns
The Central GST Department’s Preventive Wing has raided a company in Ludhiana. The investigation has unveiled that the company is involved in fraudulent billing worth crores. GST officials have confiscated all related documents of the company and have begun further investigation into the case.
As of now, the exact amount of tax evasion has not been officially confirmed; however, sources indicate amounts in crores. It seems the department conducted this raid in response to a complaint filed against the company. The name of the complainant has not been revealed, but sources say the complainant had submitted detailed documents of all the fraudulent bills to the GST department. This raid has lit a fire in the entire furnace industry.
In this context, the Induction Furnace Association says, “How would they know if the individual from whom they have purchased goods and services and the individual to whom we have sold them have paid Goods and Services Tax (GST) on them to the department?” However, they have paid the full GST amount to the person from whom they have purchased the goods or services. Still, instead of going after the real back-end and front-end culprits, the department targets companies like them that are already paying taxes.
The government has been requested to impose 5% GST on scrap and remove the current 18% GST. This change will ensure GST is not evaded. This request has been submitted numerous times to the government. However, no action has been taken in this context yet.
