GST and Income Tax officers conducted a joint search operation in the premises of Indore-based Paper Trade Links Pvt Ltd and detected GST evasion of Rs 1.25 crore, besides Rs 30 crore cash deposits in bank account in last couple of months.
Based on a tip-off, GST officers on June 26, 2019, searched the premises of the entity, which is a fake firm opened for the sole purpose of issuing fake invoices and passing fraudulent input tax credit, sources said.
The modus operandi followed by the entity was selling of goods (papers of different sizes) without issuing tax invoices and without paying GST on the supplies.
During the search operation, tax officers found "several incriminating evidence", including parallel records maintained by the firm and seized delivery challans without tax invoice.
During the search operation, the party also admitted to have been indulged in tax evasion, sources said.
GST officers during the operation also found Rs 1.09 crore cash and informed the Income Tax Department. During the course of enquiry, the I-T officers found that the firm has deposited Rs 30 crore cash in bank account during the last couple of months and now the I-T returns of the past years are being scrutinised.
Although the exact quantum of tax evasion is yet to be ascertained, preliminary investigation suggests that about Rs 1.25 crore of GST was evaded by Paper Trade Links by supplying goods without bill, sources said, adding the amount is likely to go up significantly after detailed investigation.
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