GST evasion to the tune of Rs 1.27 crore by proprietorship firm Krishna Timber was detected by the Excise and Taxation Department, Yamunanagar .
A case was registered against Rahul Kumar, proprietor, M/S Krishna Timber, under Sections 420 (cheating) and 406 (criminal breach of trust) of the IPC at City police station, Jagadhri, on January 14 on complaint of Sugam Pal Singh, Excise and Taxation Officer (ETO).
Rahul Kumar had registered M/S Krishna Timber under the GST Act on June 19, 2018 and mentioned the address of a shop in new grain market, Jagadhri. On inquiry by the ETO, it was found that no such firm existed there.
Rahul had raised invoices of Rs 7,05,17,425 from June 2018 to December 2018 to different businessmen who claimed input tax credit (ITC) to the tune of Rs 1.27 crore.
The complainant alleged that prima facie, it appeared that the proprietor of the firm had issued tax invoices and e-way bills without supplying the goods with an intention of extending the benefit of ITC to other businessmen (dealers).
In an earlier case an FIR had been registered against Rayyan, proprietor of Boston International, , on the complaint of Bhupinder Nath, ETO on October 12 last year and he was booked in connection with tax evasion of Rs 2.06 crore on the billing amount of Rs 12.33 crore by issuing fake invoices.
PS Mor, Deputy Excise and Taxation Commissioner, Yamunanagar, said that the officers of the department were conducting survey of new taxpayers and conducting intensified e-way bill checking to improve GST law compliance. The department has collected tax and penalty of Rs 2.55 crore from October 2018 to December 2018 in Yamunanagar district.
