TaxTMI 
TaxTMI 
TGST Act, 2017 – GST ITC Fraud cases - Guidelines and Standard Operating Procedure – Issued
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....ial 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 the major frauds identified are: * Issuing an invoice without supply....
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....turn 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 the information. Inspection: The case file shall be studied in detail with reference to the information received and if there is a reason to believe that the registered person is a bill trader/ Master mind/ Beneficiary, a case report shall be....
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....ould 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. b. After following due procedure, Registration shall be cancelled. The cancellation proceedings of such registration should be a speaking order by incorporating all the evidences. The cancellation orders passed without details, in single line and without establishing the involvement of taxable person in the frau....
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....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 recipient(s) who availed the ITC passed on by the fraudulent person shall be identified. b. The TPs having registration with the PAN of the fraudulent person shall be identified. The TPs having registration with the PAN of the partners/ directors of fraudulent person shall be identified. c. The proper officer shall communicate the details of above said TPs along with....