In a shocking incident from Jamnagar, a local accountant has been accused of scamming a factory owner by fraudulently reactivating a defunct GST number. The scam surfaced after the Junagadh GST department issued a notice to Vishnu Pandya, a former factory owner, who was unaware that his GST number had been misused.
Pandya, who ran Kailash Metal, a brass parts factory that closed in 2020, was stunned when he received a GST notice years later. Now working as a Pandit, Pandya initiated an investigation, discovering that his former accountant had illicitly reactivated his factory's GST number and used it to open a new account under the name ‘Riddhi Siddhi Casting.’
The accountant allegedly secured a loan of ₹5 lakh and conducted false transactions spanning from 2020 to 2024. He falsely claimed input tax credits amounting to approximately ₹5 crore. Pandya has since lodged a formal complaint, and local police are actively investigating the matter.
This case highlights the growing issue of GST fraud and misuse of inactive business GST numbers. Tax authorities are increasingly focused on tightening compliance and taking action against such fraudulent practices.
CAclubindia
