Company Proprietor Held in Hyderabad for Causing Rs.84.15 Cr to Exchequer
The department said prompt action will continue to be taken against persons involved in fraudulent ITC claims, fake invoicing, and other violations of GST laws
Hyderabad: The Commercial Taxes (CT) department conducted an investigation into the activities of Sandeep Kumar Goel, Proprietor of SKG Trading Company, who was found to have availed and passed on Input Tax Credit (ITC) on the strength of invoices issued without the underlying supply of goods.
Such fraudulent transactions resulted in wrongfully availing ITC approximating to Rs.84.15 crore, thereby causing significant loss to the government exchequer. Several opportunities were given to him to rectify and make good the loss of revenue to the government, according to a statement issued here on Friday.
It further stated that investigation also revealed that Goel being a proprietor of HFC Steel Tubes and Valves and Partner in Vijay Industrial Needs LLP was also involved in claiming ITC fraudulently without actual receipt of goods and services to the above companies. The registration of these two entities was cancelled.
Considering the gravity of the offence, the officers of the Commercial Taxes department have arrested Goel under the provisions of the Telangana GST Act-2017 after following due legal procedure. The individual was produced before the competent judicial authority and was remanded to judicial custody today.
The department said prompt action will continue to be taken against persons involved in fraudulent ITC claims, fake invoicing, and other violations of GST laws and reiterated its commitment to a tax system that is transparent and fair and contributes to the ease of doing business in the State.
Further investigation in the matter of SKG Trading Company is under progress, the statement added.