An investigation involving amount of Rs. 70 crore tax credit scam is carrying on by the UT excise and taxation department, which will also take help of excise department to unearth the large spread scam.
Earlier also, the department had detected 132 bogus dealers who used fake addresses for registration under GST in the city.
Read More: GST number cancelled of 132 bogus firms
It has decided to scan transactions made by 20 bogus firms in neighbouring states including Punjab, Haryana, Himachal Pradesh and Delhi.
In the recent two years after the rollout of GST mechanism, the department has already identified 305 companies, who claimed the maximum input tax credit (ITC) under the goods and services tax (GST)
Notices asking the explanation from these firms will be issued by the department. Further revealed that the five bogus dealers, who were primarily involved in the scam, had claimed ITC in huge numbers.
The investigation has so far revealed 20 dealers, including five who were penalized, were not doing any sale and purchase in Chandigarh but dealing only in Haryana and other states.Â
These dealers issued invoices to various firms/companies without actual supply of goods mentioned and facilitated illicit ITC entitlement. The department has already cancelled GST registration number of the five bogus dealers slapped a penalty of Rs 17 crore.
A List 15 other bogus dealers was prepared on the basis of reports received from other states sent to the central excise department for action.
Against them on July 26, Deputy Commissioner Mandip Singh Brar, who is also holding the charge of excise and taxation commissioner had ordered the penalty.
The accused caused a loss to the exchequer by procuring invoices and undertaking fake purchases from non-existent firms and passing on fake ITC to various end-users who utilized it to offset their GST liabilities.
