Massive crackdown on GST evaders: Govt initiates motion towards 7000 entities, 5 CAs amongst 187 arrested
2 min read Image Source : FILE Massive crackdown on GST evaders: Govt initiates motion towards 7000 entities, 187 arrested
In an enormous crackdown on GST evaders, the federal government has initiated motion towards 7,000 entities together with the arrest of 187 — a marketing campaign that contributed to buoyancy in tax assortment. In an interview to PTI, Finance Secretary Ajay Bhushan Pandey mentioned motion towards pretend invoicing racket in final one-and-a-half month hs led to arrest of 187, together with 5 chartered accountants and one firm secretary.
“Many of them including some managing directors are in jail for the last 40-50 days. There are few large companies which too are found involved in taking fake bills through multiple layers, thereby evading GST and income tax. So they have also been booked,” he mentioned.
The authorities netted a file GST assortment of Rs 1.15 lakh crore in December 2020, helped by the motion towards tax evaders alongside decide up within the financial system.
READ MORE: GST collections at all-time excessive of over Rs 1.15 lakh crore in December 2020
The finance secretary mentioned that the motion towards those that attempt to misuse the system has been based mostly on collating info from varied companies akin to Income Tax Department, Customs Unit, FIU, and GST division and banks.
“We have taken action against 7,000 evaders out of a tax base of 1.20 crore. Hence our success rate is very very high,” he mentioned.
Pandey, who can be the Revenue Secretary, mentioned that the earnings tax division instantly follows up on all of the circumstances booked underneath GST pretend bill as a result of the tax implication is greater. “Because of the data available, it is very very difficult to escape because sooner or later they will get caught,” he mentioned.
The secretary mentioned they’ve detected many shell firms which can be issuing invoices price crores of rupees and never paying earnings tax and paying all the legal responsibility by way of ITC. “So in order to ensure that these companies are not able to abuse the system, this particular anti-abuse provision has been put in and this will impact less than 45,000 units in the entire tax base of 1.2 crores,” he mentioned.
READ MORE: GST officers detect over Rs 830 cr tax evasion by Delhi-based pan-masala manufacturing unit
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