GST fraud: Ggn companies under radar of police

Gurugram: Six months after it was first launched, the incidents of corruption have now begun to surface in Goods and Service Tax process.

In a recent case of fraud busted in Gurugram, a company, claiming that the input credit cost from the government under the GST, was found to be fraudulent.

After this case there are concerns that there might have more fake firms that are operating in the city and are duping the government in terms of collection of the input credit cost. Sources indicated that over 16 companies are being probed by the Excise department.

The whole incident came to fore when a company named Vipin Enterprises, which mentioned its office in Sector-40, sought the repayment of input credit cost of Rs 5 crore from the state government.

Upon investigation, it was found out that the location, that the company mentioned for its office, in reality had the shop of a barber.

Following this incident, the Excise department of the state has begun investigations and an official complaint has also been registered in the Sadar police station.

"We have registered the FIR in the following case and have begun our investigations," said a spokesperson.

"It is not a new phenomenon that corruption cases like these are only happening during the GST era which is supposed to be transparency. Being online the government agencies can easily track the fake firms and bring them to book," said Ashwini Thakkar, a tax expert.