GST and Custom expert from Mumbai advocate Sanjay Dwivedi said nowadays the GST Department is vigilant and detecting large number of fake GST invoice transactions and the persons found involved in these transactions will have to face strict action and would be strictly dealt with. He was addressing a webinar on ‘Frauds& Fake GST Invoices’ organized by the COSIA Vidarbha.Dwivedi further said that there are various types of GST transactions which tantamount to fraud, supply of goods or service without invoice, invoice without supply of goods, A raises invoice to B,B to C,C to D and so on. But the goods do not move and purpose seems to increase the turnover, advance issue of invoice and in circular transaction original supplier vanishes.
He said that the officers have wide powers to detect frauds and also to recover the defaulted tax with heavy penalty. Powers to detect the fraud includes rights to search the premises, stock registers, gate entry, physical stock verification and the other party’s records without notice or search warrants. The department can make recovery through seizure and attachments of properties (movable and immovable both) business premises, bank accounts, lockers, outstandings from debators and personal belongings of owners/directors. Heavy penalty can be levied up to 200 percent of tax amount or in certain cases upto 50 percent of the value of goods in certain cases and or imprisonment upto years if the tax liability between Rs 2 to Rs 5 crore and 1 year if the tax liability more than Rs 1 crore but less than Rs 2 crore .CA Julfesh Shah Vice C hairman COSIA moderated the session.
