The Enforcement Directorate (ED) on June 6 conducted searches at 25 locations in Gujarat, Maharashtra and Karnataka in connection with a Rs 122 crore GST fraud case. The searches were conducted at the premises of various individuals and companies involved in the alleged fraud.
The ED has registered a case under the Prevention of Money Laundering Act (PMLA) on the basis of a complaint filed by the Central Board of Excise and Customs (CBEC). The CBEC had alleged that the accused had fraudulently availed input tax credit (ITC) worth Rs 122 crore by filing fake invoices.
The ED has seized various incriminating documents and electronic evidence during the searches. The agency is further investigating the matter to ascertain the exact quantum of the fraud and to identify the other persons involved in the scam.
The ED’s action comes as a major crackdown on GST fraudsters. The agency has been conducting raids and searches across the country in recent months to check GST evasion. The ED has also arrested several people in connection with GST fraud cases.
The government has taken several steps to check GST evasion, including setting up a special investigation team (SIT) to investigate cases of fraud. The government has also made it mandatory for taxpayers to file their returns online and to use the GST Network (GSTN) for all transactions.
The government is committed to check GST evasion and to ensure that the benefits of GST reach the common man. The ED’s action is a clear message to GST fraudsters that they will not be spared.