GST INVOICE RAISED BY THE FRADULENT COMPANY WITHOUT THE KNOWLEDGE OF THE OTHER PARTY

This query is : Resolved

swamy (Querist)
Follow

03 May 2025 If a fraudulent firm files an invoice in someone’s name and disappears, who is responsible for paying the tax amount?

1. The person in whose name the invoice was filed has no knowledge of the firm.
2. The invoice or materials have not been received.
3. The tax amount hasn't been utilised.

The person then receives a notice from the Anti-Evasion Cell, which is part of the GST authority, and they must pay the tax amount.
If a fraudulent firm raised an invoice in someone’s name and then disappeared, whose responsibility is it to pay the tax amount? What is the best course of action to take

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 May 2025 No need to pay tax amount in such a case.
Report the issue with the police for investigation.
File credit note to nullify the tax payable.

swamy

swamy (Querist)
Follow

05 May 2025 THANKS. But is it necessary to write a letter to the concerned {Notice issued to us} authorities, stating our stand?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

07 May 2025 Yes, better inform the concerned.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now