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CGST Commissionerate arrests co-conspirator in ITC fraud

CGST Commissionerate Mumbai South Arrests Co-conspirator in a Fake Input Tax Credit Claim of Rs. 11.07 Cr; Proprietor arrested earlier CGST Mumbai South Commissionerate has detected tax evasion of Rs. 876 Crores, recovered Rs. 14.4 Crores so far Mumbai, 26th April 2022   Anti-Evasion Unit of Mumbai South CGST Commissionerate has arrested the co-conspirator in a case of M/s New Laxmilal & Co. (GSTIN 27ACAPS6257K1ZS) involving fake ITC of Rs. 11.07 Cr on the strength of b..

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DGGI officials arrests one for fraudulently availing ITC of more than Rs 16 crore

One arrested by DGGI Gurugram officials for fraudulently availing Input Tax Credit of more than Rs 16 crore The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GU), Gurugram, has unearthed a case wherein a series of entities controlled by a person as Proprietor / Director of M/s Umang Overseas, M/s Ulagarsan Impex Put Ltd and M/s Umang Impex Private Limited, was found to be involved in availing and passing fraudulent Input Tax Credit (ITC) of Rs  16.74 crore without r..

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2 held by CGST Officials for ITC fraud of more than Rs 31.85 crore

2 held by Faridabad CGST Commissionerate for issuing fake invoices of over Rs 200 crore and availing involving fraudulent ITC of Rs 31.85 crore Central Goods and Services Tax (CGST) Commissionerate, Faridabad, of Panchkula CGST Zone, on 23.02.2022 arrested two persons for running a fake billing racket, involving five (5) dummy firms, dealing in trading of iron scrap, registered in Faridabad, Haryana, for issuance of fake invoices of over Rs 200 crore without actual supply of goods and availin..

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Conditions for claiming ITC under GST

Every registered person is allowed to take tax credit for input tax. Meaning of input tax credit "Input tax" in relation to a registered person, means the central tax, state tax, or union territory tax charged on any supply of goods or services or both made to him, it does not include the tax paid under the composition levy. "Input tax credit" means the credit given on input tax. What are the conditions for claiming input tax credit? Sec 16 of CGST act provides so..

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CGST busts fake ITC racket of Rs 10.68 crore in Mumbai

CGST Navi Mumbai Commissionerate busts fake ITC racket of Rs. 10.68 Crore, arrests proprietor of a steel firm CGST Commissionerate, Navi Mumbai had busted a fake ITC racket of Rs. 10.68 Crores and arrested the proprietor of M/s. Navnit Steels (GSTIN: 27AEXPD3871K1ZV) on Wednesday (February 2, 2022). The firm has engaged in availing and utilizing a fraudulent Input Tax Credit (ITC) on the bogus invoices of Rs 60 Crore, thereby defrauding the government exchequer.   A team of officer..

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Businessman arrested in Mumbai for running fake ITC network of more than Rs. 63 Crores

CGST Bhiwandi Commissionerate arrests businessman for running fake ITC network The officers of Bhiwandi Commissionerate of CGST Mumbai Zone have arrested a businessman was running a Fake GST Input Tax Credit racket. Acting on an intelligence from Central Intelligence Unit of Mumbai CGST Zone, the officers initiated coordinated action at different locations in Thane, Bhiwandi, Raigad and Mumbai and detected GST evasion of Rs 11.4 crores through generation and passing of fake ITC through intric..

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Attention: Restrictions on availment of ITC as per GSTR-2A from 1st January 2022

Arjuna (Fictional Character): Krishna, what is the new amendment that has been notified by the CBIC in respect of claim of ITC which will be applicable from 1st Jan 2022? Krishna (Fictional Character): Arjuna, Earlier taxpayer had been allowed to claim ITC based on the 4 conditions mentioned in section 16. However, in section 16 of the Central Goods and Services Tax Act, in sub-section (2), after clause (a), CBIC has inserted 5th condition via clause (aa) namely, “the details of the inv..

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GST ITC available when reflected in GSTR 2A/ 2B w.e.f. January 01, 2022

Background The Hon'ble Finance Minister, in Budget 2021-22, proposed changes vide the Finance Bill, 2021, that amends the Central Goods and Services Tax Act, 2017 ("the CGST Act") to insert a new condition for availment of Input Tax Credit ("ITC") under the GST. Accordingly, amended Bill was passed in Rajya Sabha, the upper house, and it received presidential assent vide Finance Act, 2021. Relevant provisions:   The CBIC vide Notification No. 39/2021- Cen..

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Important Changes in ITC and Vehicle Detention w.e.f 1st January 2022

The CBIC has issued CGST Notification No: 39 dated: 21.12.2021 which notifies the Sections 108, 109, 113 to 122 of Finance Act, 2021 will be enforced effective from 01.01.2022. The important changes that will be affect businesses, particularly MSME and Small businesses are related to ITC condition and Detained Vehicle releasing conditions. Let us see what the new conditions says and how it impacts business: Section 109 of Finance Act, 2021 In section 16 of the Central ..

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Mumbai Based CA arrested for generating Fake Input Tax Credit

On 14/12/2021 (Tuesday) GST Officers of Thane commissionerate arrested Vikram Jain, a Mumbai-based CA for generating fake invoices worth more than Rs 500 crores to tune a GST of Rs 92 crores without actual receipt of goods. Vikram had violated provisions of section 132 of the CGST Act and has been arrested for the same. How was this done? Accused used the identity of a housewife and created a firm named M/s. Shraddha Electrical, located in Thane. The accused generated invoices without the ..

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All about Input Tax Credit under GST

Know Everything about Input tax credit & claiming ITC under GST When we purchase something we pay the tax for that particular product or service. Now in the case of the manufacturer, or a person who is not an end-user shall have to pay tax on the total amount of the sale made for a year. Now the manufacturer can deduct the tax that he already paid for the goods from the total amount of services which is referred to as Input Tax Credit. In this article, we have discussed Input Tax Credit u..

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CGST Officials unearth ITC fraud of around Rs 34 crore involving 7 firms

Based upon specific intelligence, the officers of the Anti Evasion branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (East) have unearthed a case of availment/utilization and passing on of inadmissible input tax credit (ITC) through bogus GST invoices without actual movement of goods of Rs 34 crore (approx). The 7 firms were created in order to generate bogus GST invoices with an intent to pass on fraudulent ITC without actual movement of goods and without paying actual GS..

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ITC on Works Contract Service and Construction of Immovable Property

Under GST law before taking credit of input tax the important test is business nexus test where we have to check that input is used or intended to be used in the course or furtherance of business. Section 17(5) clause C&D of CGST Act, 2017 blocks taking credit of input tax in respect of construction of immovable property both by way of giving contract to others or individually buying materials and constructing the immovable property, if the said expenses is capitalised in the books of acc..

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Legality Status of ITC Block by GST Department

The article explains the Meaning of Input Tax, Eligibility and Condition of Taking input tax credit, what is Blocked Credit under GST, and the Legality of block credit Introduction "input tax" in relation to a registered person, means the central tax, State tax, integrated tax, or Union territory tax charged on any supply of goods or services or both made to him and includes- (a) the integrated goods and services tax charged on import of goods; (b) the tax payable under th..

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ITC on CSR activity: The new battleground?

COVID-19 Pandemic has forced every one of us into an era that was not thought of, or even imagined by anyone. There are a variety of lifesaving measures be it national-wide lockdowns, the shutdown of businesses, closing the international and national borders as well as working remotely are being carried out by authorities in order to keep the effects to the minimal. With regard to the effect that covid-19 may have on human race, some organizations are getting into social initiatives, includin..

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All About ITC under GST | An analysis

Input credit means at the time of paying tax on output, one can reduce the tax payable by taking the credit for tax paid on inputs. If you are a manufacturer, supplier, agent, e-commerce operator, aggregator or any of the persons mentioned, registered under GST, you are eligible to claim Input Tax Credit.   Conditions to claim ITC under GST The following are the conditions required to be met claim ITC: One should have a tax invoice (of purchase) or debit note issued by regist..

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A Guide to ITC under GST

According to Section 2(62) of CGST Act, Input tax credit means “Central Tax (CGST), State tax, Integrated Tax (IGST), union tax (UTGST) charged on supply of goods or services or both and includes (i) IGST charged on import of goods (ii) Tax payable on Section 9(3) and 9(4) under CGST (reverse charge of CGST) (iii) Tax payable on Section 5(3) and 5(4) under IGST (reverse charge of IGST) (iv) Tax payable on Section 9(3) and 9(4) under respective SGST (reverse charge of IGST) (v) Tax p..

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Inverted Duty Structure Refund and who can avail it under GST

What is Inverted Duty Structure Refund and who can avail it Under GST? Inverted Duty structure is the condition where tax rate payable on inputs is higher than tax rate charged on output of sales. When the input credit has been accumulated on account of inverted tax structure, but supplies of labor and products or both as might be told by the public authority on proposal of the council, then a registered person is eligible to claim refund of such accumulated ITC. TIME LIMIT According to..

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DGGI Gurugram arrests 3 persons, including mastermind, commission agent and CA in racket of fictitious firms involving fake ITC of 121 crore

The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested 3 persons including a CA on charges of creating and operating multiple fictitious firms on forged documents and passing large amounts of fake input tax credit by way of issuance of invoices without any actual receipt or supply of goods or services. From the investigation conducted till date, it has been established that one of the arrested persons has created at least 13 firms and has been invol..

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All about Block Input Tax Credit In GST

INTRODUCTION In this article will study about Meaning of Input Tax Credit, Conditions for Eligible Input Tax Credit, What is Block Input Tax Credit, Items which are not allowed to take credit, and finally Author's View. What is ITC? Input Tax Credit Mechanism is available to you when you are registered as a Taxpayer under GST Act whether you are Manufacturer, Supplier, Agent, E-Commerce Operator etc. You are eligible to claim ITC on your Purchases. CONDITIONS FOR ELIGIBLE INPUT T..

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