Several major infra companies which are into government projects like irrigation and other works in Telangana and Andhra Pradesh along with iron and steel companies supplying fake invoices to them are now under the scanner of GST Intelligence sleuths.
GST Intelligence sleuths unearthed fake invoices worth 680 crore and input tax credit fraud. Circular trading was found where cash is withdrawn after a series of transactions and given to the infra companies by raising fake invoices.
Tax evasion was rampant in steel industry during service tax regime too. In steel industry, there are several rolling mills, distributors and local smelting factories of scrap iron making it is easy to evade 18% GST. Apart from tax evasion, fake invoices are created for converting legitimate cash into black money and also availing input tax credit on the sales that never happened.
