TaxTMI 
TaxTMI 
TGST Act, 2017 – GST ITC Fraud cases - Guidelines and Standard Operating Procedure – Issued
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.... Bill trading is a fraudulent activity that creates an artificial trading trail by issuance of tax invoices by non-genuine tax payers without any supply of goods or services or both, with intention to aid in evasion of tax enabling beneficiary TPs to avail ITC fraudulently. Mastermind obtains registration(s) either in his name or any other person by either furnishing fake documents or documents of a person who doesn't have capacity to conduct business. The other person may or may not be aware of the activity carried out in their name by the Mastermind. Mastermind also opens and operates bank accounts of such fictitious entities, generates e-way bills, issues invoices, files returns in the name of such fictitious entities. Some of th....
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....e case file and the details shall include: a) All details of registration, PAN details and registrations on the PAN and on the PAN of partners and directors including other state TPs. b) Return and tax payment details - turnover, tax and nature of disposal of tax (credit and / or cash) c) e-way bills reports available in NIC portal, BIFA (GAIN) reports, Status of refunds granted d) Transportation Details, Toll Gate (NIC/ NHAI) Data e) Electricity consumption details f) Notices issued, if any; g) Any other information/documents received from internal or external sources. iv. Preparation for case file shall be completed within three (3) working days from the date of receipt of ....
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....e procedure of investigation, inspection and submission of inspection report shall be completed within (15) days from the date of receipt of the information. Post inspection work: After inspection, once sufficient evidence is gathered against a person as involved in GST fraud, then action should be taken against him to curb further fradulent activities including, cancellation of registration, blocking of ITC, reversal of ITC, filing of criminal case and levying of penalty and interest. i) Cancellation of Registration: a. In all cases where GST fraud has been identified, immediate suspension of registration of the registered person, i.e. notice for ab-initio cancellation of registration shall be issued immediately. ....
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.... d. Adjudication orders without establishing the above facts, will not stand scrutiny of judicial test, therefore the adjudicating officers should take responsibility to pass well-reasoned order. e. It must be ensured that entire gamut of adjudication by the proper officer shall be completed within six (6) months and not later than the outer limit of one year without allowing the case to unblock automatically by the system on expiry of one year from the date of blocking. In the event of the ITC getting unblocked automatically, serious view will be taken against the officer concerned. iv) Identification of beneficiary of GST Fraud and intimation: a. The Supplier(s) who passed on ITC to the fraudulent person and the reci....