Madras HC upholds state GST authorities' power to block ECL for errant firms
3 months, 3 weeks ago

Madras HC upholds state GST authorities' power to block ECL for errant firms

New Indian Express  

CHENNAI: In a significant verdict, the Madras High Court has upheld the authority of the State Goods and Services Tax authorities to block the electronic credit ledger of firms found wrongfully availing input tax credit until investigations are completed. “This Court is of the considered view that the negative blocking is well within the scope of provisions of Rule 86A of GST Rules,” Justice Krishnan Ramasamy stated in a recent order, dismissing writ petitions filed by Chennai-based Skanthaguru Innovations Private Limited. The Central GST authorities had initiated proceedings against the company for fraudulently availing ITC amounting to Rs 6.8 crore for the period up to March 2024. Simultaneously, the State GST authorities discovered wrongful availment of ITC totalling ₹13.10 crore for the period up to September 2024.

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History of this topic

Bogus companies, fake invoices: ₹1,196 crore GST fraud unearthed by DGGI Pune Zonal Unit; check details
1 month, 2 weeks ago

Bogus companies, fake invoices: ₹1,196 crore GST fraud unearthed by DGGI Pune Zonal Unit; check details

Live Mint  

The Pune Zonal Unit of the Directorate General of GST Intelligence has busted a Goods and Services Tax evasion racket involving a fraudulent input tax credit scam of ₹1,196 crore and arrested one individual in connection with the case. The investigation has revealed a sophisticated network of bogus companies engaged in fraudulent Input Tax Credit transactions, reported PTI quoting DGGI …

GST evasion of ₹1.88 lakh cr detected by CGST officers during April-Dec 2024
1 month, 2 weeks ago

GST evasion of ₹1.88 lakh cr detected by CGST officers during April-Dec 2024

Live Mint  

New Delhi, Feb 10 GST evasion of over ₹1.88 lakh crore was detected by Central GST officers during April-December 2024, the Lok Sabha was informed on Monday. Minister of State for Finance Pankaj Chaudhary said GST evasion, including ITC fraud cases, in 72,393 cases between April and December stood at ₹1.88 lakh crore. In the 2023-24 fiscal, CGST officials detected …

Delhi High Court restores Samsung’s plea against ₹1,213-crore tax demand
3 months, 3 weeks ago

Delhi High Court restores Samsung’s plea against ₹1,213-crore tax demand

Live Mint  

In a reprieve for Samsung India, the Delhi High Court on Monday overturned an order by the Income Tax Appellate Tribunal that had dismissed the company’s plea to stay a ₹1,213 crore tax demand for the assessment year 2021-22. A bench comprising Justice Vibhu Bakhru and Justice Swarna Kanta Sharma restored Samsung’s stay application and directed the ITAT to decide …

S.16 GST | Authorities Not Estopped From Taking Action Against Wrongful Claim Of ITC Based On Non-Existent Firms: Allahabad High Court
10 months, 1 week ago

S.16 GST | Authorities Not Estopped From Taking Action Against Wrongful Claim Of ITC Based On Non-Existent Firms: Allahabad High Court

Live Law  

The Allahabad High Court has held that the authorities are not estopped from taking action against wrongful claim of input tax credit merely because the firms with which transactions were alleged to have been done were registered at the time of the alleged transactions. benefit had earlier been granted to the petitioner merely because the firms were registered, would not …

Over ₹1,000-crore GST fraud in Telangana unearthed by CT department
1 year ago

Over ₹1,000-crore GST fraud in Telangana unearthed by CT department

The Hindu  

The Commercial Taxes department has unearthed an over ₹1,000-crore GST fraud in refunds and input credit tax cases after the Congress party came to power in Telangana. Preliminary desk audits by senior CT officials have exposed fraudulent refunds and input tax credits which it appears was deliberately suppressed by the previous regime. On one hand, the firms under investigation have …

Finance Minister bats for swift clarity on GST classification issues
1 year ago

Finance Minister bats for swift clarity on GST classification issues

The Hindu  

Finance Minister Nirmala Sitharaman on Monday stressed the urgent need to bring clarity on classification-related issues under the Goods and Services Tax regime, urging tax officials to look into the issue “at the earliest through appropriate channels”. Addressing the first-ever ‘National Conference of Enforcement Chiefs of State and the Central GST Formations’ that will be held twice a year going …

Indirect Tax Cases Weekly Round-Up: 25 February To 3 March 2024
1 year ago

Indirect Tax Cases Weekly Round-Up: 25 February To 3 March 2024

Live Law  

Delhi High Court Case Title: Apshara Garments Pvt. Bombay High Court Case Title: Shri Yogesh Rajendra Mehra Versus Principal Commissioner CGST & Central Excise Raigad The Bombay High Court has held that any deficiency in filing the appeal or application, like failure to file physical documents, cannot cause the appeal, which was registered on the online portal within the prescribed …

HUL hit with ₹447.5 crore GST demands and penalties
1 year, 2 months ago

HUL hit with ₹447.5 crore GST demands and penalties

Live Mint  

Leading FMCG maker Hindustan Unilever Ltd on Monday said it has received Goods and Services Tax demands and penalties totalling ₹447.5 crore from the authorities. This includes the demand for tax "on salaries including allowances paid to expats amounting to ₹372.82 crore and penalty amounting to ₹39.90 crore" from the Joint Commissioner, CGST and Central Excise, Mumbai East Besides, Deputy …

Detected GST evasion of ₹57,000 crore since April 2020: Finance ministry
1 year, 5 months ago

Detected GST evasion of ₹57,000 crore since April 2020: Finance ministry

Hindustan Times  

NEW DELHI: The Directorate General of GST Intelligence has detected Goods and Services Tax evasion of ₹57,000 crore from April 2020 to September 2023 involving over 6,000 fake instances of input tax credit claims leading to the arrest of 500 people, a finance ministry statement said on Wednesday. Detected GST evasion of ₹ 57,000 crore since April 2020: finance ministry …

GST | Circular Does Not Override Statutory Provisions: Allahabad High Court Quashes Demand Of Rs. 235 Crores Against Vivo Mobile
1 year, 5 months ago

GST | Circular Does Not Override Statutory Provisions: Allahabad High Court Quashes Demand Of Rs. 235 Crores Against Vivo Mobile

Live Law  

The Allahabad High Court has quashed demand of Rs. If the law were to be read otherwise, i.e., that the ITC claim may never arise unless the tax is first paid then, the second proviso to section 16 itself would be rendered otiose.” Further, placing reliance on Union of India v. Bharti Airtel Ltd. and Others, wherein the Supreme Court …

Difficulties Faced On Initial Phase Of GST Implementation, Kerala High Court Sets Aside Disallowance Of ITC
1 year, 5 months ago

Difficulties Faced On Initial Phase Of GST Implementation, Kerala High Court Sets Aside Disallowance Of ITC

Live Law  

The Kerala High Court recently addressed the difficulties faced by small scale dealers during the initial phases of GST implementation in understanding the provisions of GST Act. Justice Dinesh Kumar Singh set aside the orders of the assessing authority disallowing the input tax credit claims of the petitioners and observed thus, “The period involved is 2017-18 when the GST regime …

Non-bailable warrant issued against 10 people in fake ITC documents case
1 year, 7 months ago

Non-bailable warrant issued against 10 people in fake ITC documents case

Live Mint  

The Noida Police has issued non-bailable warrant issued against 10 people for defrauding the government of ₹15,000 crore by using fake input tax credit documents, news agency ANI has reported on 20 August. Earlier on 12 August, a businessman was arrested by the Central GST in Chhattisgarh's Bilaspur district for allegedly availing and utilising ITC worth ₹10.14 crore by issuing …

Rs 15,000 crore tax evasion detected, over 4,900 fake GST registrations cancelled
1 year, 8 months ago

Rs 15,000 crore tax evasion detected, over 4,900 fake GST registrations cancelled

Op India  

On the 5th of July, a senior tax official stated that the GST authorities have cancelled over 4,900 fake GST registrations, since the 16th of May, 2023. He stated that in the drive against fake registration, till July 4, over 69,600 GST Identification Numbers have been selected for physical verification by field tax officers. Speaking at the ASSOCHAM’s National Conclave …

100 Important High Court Judgments of GST in 2022
2 years, 2 months ago

100 Important High Court Judgments of GST in 2022

Live Law  

Allahabad High Court: Allahabad High Court Stays GST Demand On Payment Of Royalty To Conduct Mining Activity Case Title: M/s Jitendra Singh versus Union of India The Allahabad High Court bench of Justice Saumitra Dayal Singh has stayed the GST demand on payment of royalty to conduct mining activity. Show Cause Notice Cancelling GST Registration Must Disclose Reason: Allahabad High …

Tax Cases Monthly Round-Up: November, 2022
2 years, 3 months ago

Tax Cases Monthly Round-Up: November, 2022

Live Law  

Indirect Taxes Supreme Court Case Title: OCL India Limited vs State of Orissa Citation: 2022 LiveLaw 911 The Supreme Court upheld States' power to impose entry tax from Industrial Township/Areas. Bombay High Court Case Title: Asit C. Mehta Financial Services Limited versus The Customs Excise and Service Tax Appellate Tribunal The Bombay High Court has ruled that the time limit …

GST Registration Cancellation: Madras High Court Directs Changes In Architecture Of GST Portal
2 years, 6 months ago

GST Registration Cancellation: Madras High Court Directs Changes In Architecture Of GST Portal

Live Law  

The Madras High Court has directed the GST department to take suitable steps by instructing GST Network, New Delhi to make suitable charges in the architecture of the GST Web Portal to allow the petitioners to file their returns and pay the tax/penalty/fine.The single bench of Justice Anitha Sumanth has noted that payment of tax, interest, fine/fee, etc. The Madras …

Interest Leviable On Belated Remittance of GST Even If Credit In Cash/Credit Ledgers Is Available: Madras High Court
2 years, 6 months ago

Interest Leviable On Belated Remittance of GST Even If Credit In Cash/Credit Ledgers Is Available: Madras High Court

Live Law  

The Madras High Court has ruled that interest on late GST remittances is levied even if credit in electronic cash or credit ledgers is available. The petitioner argued that it had sufficient ITC credit in both the electronic cash ledger and the electronic credit register. Thus, it would be risky, from the viewpoint of the revenue, to state as a …

No Reason To Believe That Input Tax Credit Is Fraudulently Availed: Punjab & Haryana High Court
2 years, 9 months ago

No Reason To Believe That Input Tax Credit Is Fraudulently Availed: Punjab & Haryana High Court

Live Law  

The Punjab and Haryana High Court bench of Justices Tejinder Singh Dhindsa and Pankaj Jain has held that there should be reason to believe that the input tax credit available in the Electronic Credit Ledger was obtained fraudulently or that the assesses are ineligible. As per the petitioner, the department/respondents blocked Input Tax Credit amounting to Rs.1.9 Crore lying in …

Tax Cases Weekly Round-Up: 8 May To 14 May, 2022
2 years, 10 months ago

Tax Cases Weekly Round-Up: 8 May To 14 May, 2022

Live Law  

Delhi High Court Case Title: Amit Gupta Vs Directorate General of GST Intelligence Headquarters Citation: 2022 LiveLaw 426 The Delhi High Court bench of Justice Mukta Gupta has ruled that the bail amount can be paid by cash ledger and debit ledger of the Input Tax Credit. Case Title: Kedar Nath Babbar Versus Assistant Commissioner of Income Tax Citation: 2022 …

Weekly Round-Up Of Tax Cases : April 3 To April 10, 2022
2 years, 11 months ago

Weekly Round-Up Of Tax Cases : April 3 To April 10, 2022

Live Law  

High Courts Delhi High Court Case Title: American Express India Private Limited Versus ACIT Citation: 2022 LiveLaw 289 The Delhi High Court bench of Justice Manmohan and Justice Dinesh Kumar Sharma has directed the income tax department to decide on the rectification application filed by American Express and grant a refund, if any, along with the interest. Case Title: CIT …

Serious Allegations Of Availing Fraudulent GST ITC In Electronic Credit Ledger: Madras High Court Refuses Refund Of Amount
3 years ago

Serious Allegations Of Availing Fraudulent GST ITC In Electronic Credit Ledger: Madras High Court Refuses Refund Of Amount

Live Law  

The Madras High Court bench of Justice C. Saravanan refused to grant a refund of the amount lying in the assessee's electronic cash ledger on the grounds that there were serious allegations against the assessee for having an availed fraudulent input tax credit in the electronic credit ledger on the strength of a bogus and fictitious input tax invoice for …

GST officials booked 8,000 cases in ITC frauds worth ₹35,000 crore during FY21
3 years, 8 months ago

GST officials booked 8,000 cases in ITC frauds worth ₹35,000 crore during FY21

Live Mint  

Central GST zones and the Directorate General of GST Intelligence have booked about 8,000 cases involving fake input tax credit worth more than ₹35,000 crore during the last financial year. This was the result of a nationwide special drive against fake GST invoice scams launched on November 9, 2020, and is still ongoing, in light of the high proportion of …

2 more arrested in ₹484 crore GST billing scam in Ludhiana
3 years, 11 months ago

2 more arrested in ₹484 crore GST billing scam in Ludhiana

Hindustan Times  

Two more persons were arrested on Thursday in the ₹484 crore Goods and Services Tax billing scam that was unearthed in Ludhiana recently. 2 more arrested in ₹ 484 crore GST billing scam in Ludhiana The accused were identified as Gurtej Singh and Sagar, proprietors of two of the 19 firms involved in the fake invoicing racket run by Baljinder …

GST officers bust network of 46 fake firms used to fraudulently claim Rs 82 crore input tax credit
4 years, 1 month ago

GST officers bust network of 46 fake firms used to fraudulently claim Rs 82 crore input tax credit

India TV News  

GST officers have busted a network of 46 fake firms which used to generate fake invoices and fraudulently avail input tax credit worth Rs 82.23 crore, the finance ministry said on Tuesday. Through the use of extensive data analytics, officers of Delhi East GST were able to identify and unravel a network of 46 fake firms which were operating since …

GST transactions worth Rs 1 lakh crore being probed
4 years, 3 months ago

GST transactions worth Rs 1 lakh crore being probed

Hindustan Times  

The Directorate General of Analytics and Risk Management, which mines Goods and Services Tax data to expose tax evaders, has compiled a list of over 12,900 business entities, including some big companies and export firms suspected to have availed of input tax credit through fake invoices worth over Rs 1 lakh crore since July 1, 2017, when the new indirect …

Delhi GST unit unearths racket that issued fake invoices for tax benefits
5 years, 4 months ago

Delhi GST unit unearths racket that issued fake invoices for tax benefits

India TV News  

The revenue department on Friday said it has unearthed a racket involving issuances of fake invoices for availing tax benefits worth Rs 22 crore under GST and arrested two persons in this regard. Central GST Delhi North Commissionerate has unearthed the racket of issuance of fake invoices without actual supply of goods and services, the revenue department said in a …

Delhi duo cheat tax authorities by claiming Rs 127 cr GST refund; arrested
5 years, 5 months ago

Delhi duo cheat tax authorities by claiming Rs 127 cr GST refund; arrested

India TV News  

Two persons from Delhi have cheated tax authorities by claiming GST refund of Rs 127 crore. Both of them, who generated fake invoices and fraudulently availed input tax credit, were arrested by the Haryana GST authorities. The accused persons, Gulshan Dhingra and Sanjay Dhingra, were arrested on October 7 under various sections of the Central Goods and Services Tax Act, …

GST authorities arrest 2 for fraudulently availing ₹127 cr refund
5 years, 5 months ago

GST authorities arrest 2 for fraudulently availing ₹127 cr refund

Live Mint  

Haryana GST authorities have arrested two persons for generating fake invoices and fraudulently availing input tax credit totalling ₹127 crore. Gulshan Dhingra and Sanjay Dhingra, both residents of Delhi, were arrested on October 7 under various sections of the Central Goods and Services Tax Act, 2017 for "causing loss to exchequer by evasion of GST", the finance ministry said in …

Two cheat govt of Rs 700-crore through fake GST invoices, held
5 years, 5 months ago

Two cheat govt of Rs 700-crore through fake GST invoices, held

India Today  

A racket of generating fake Goods and Services Tax invoices for fraudulently claiming the input tax credit on non-supplied goods was busted in Pune with the arrest of two persons, officials said on Sunday. The preventive wing of the Central Goods & Services Tax, Pune, claimed that two city-based firms allegedly indulging in this malpractice were busted. The two firms …

Tax officials may examine high usage of input tax credit to set off GST liability
6 years, 2 months ago

Tax officials may examine high usage of input tax credit to set off GST liability

Live Mint  

New Delhi: Concerned over a decline in GST revenues, tax officials are likely to examine the high usage of input tax credit to set off tax liability by businesses, sources said. According to sources, availing ITC ideally should not result in loss of revenue but there could be possibility of misuse of the provision by unscrupulous businesses by generating fake …

GST officers arrest 2 businessmen for Rs 79.21 crore tax evasion
6 years, 6 months ago

GST officers arrest 2 businessmen for Rs 79.21 crore tax evasion

Hindustan Times  

GST officers have arrested two businessmen for evading taxes worth Rs 79.21 crore by fraudulently issuing invoices of Input Tax Credit without actual supply of goods, the Finance Ministry said in a statement. During investigation the DGGI found that these businessmen heading Mica Industries had floated two entities namely Galaxy Metal Products, Delhi and Sri Ram Industries, Delhi for issuing …

GST e-way bills issue: Madras HC issues notice to Centre, Tamil Nadu dept
7 years, 7 months ago

GST e-way bills issue: Madras HC issues notice to Centre, Tamil Nadu dept

Deccan Chronicle  

Madurai: The Madras High Court on Monday ordered issue of notice to the Centre, including Principal Secretary and Tamil Nadu Commissioner of Commercial Taxes on a PIL seeking to direct traders to use E-way billing for movement or selling of goods in order to prevent cheating. In order to help traders and common man, in case sale was cancelled, E-way …

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