NEW DELHI, Nov 15:
GST investigation arm DGGI has arrested 25 persons over the last week for issuing fake invoices for goods like waste and scrap of non-ferrous metals, readymade garments, gold, silver and construction services, a source said.
The Directorate General of GST Intelligence (DGGI) has registered about 350 cases for issuing fake invoices against 1,180 entities, and search and investigation are on to apprehend other persons involved in the racket and also the beneficiaries who used the fake invoices to evade goods and services tax (GST), Income Tax, and do money laundering.
“Major goods involved in these cases are MS/SS scrap, articles of iron & steel, copper rod/wire, waste & scrap of non-ferrous metals, plastic granules, PVC resin, readymade garments, gold and silver, construction services, works contract services, agro products, milk products, mobile, manpower supply services, advertisement and animation services, etc,” a source said.
Considering the menace of fake invoices and hawala racket, and their damaging impact on the stability of the economy, the procedure for new GST registration is also being tightened.
Businesses, whose owners or promoters do not have commensurate income tax payment records, will require physical and financial verification before their companies can be given GST registration, the source added.
“It is also being examined whether apart from taking action against the beneficiaries under GST laws, Income Tax Act, and Prevention of Money Laundering Act, issuers of fake invoices as well as beneficiaries of such invoices can be detained under Conservation of Foreign Exchange and Prevention of Smuggling Activities (COFEPOSA) Act,” the source said. (PTI)
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