GST sleuths dig out tax fraud in Sujana firms

Hyderabad: Sleuths of the Good and Services Tax (GST) Commissionerate intensified their investigation against former Union Minister and TDP MP Y Sujana Chowdary on the charges of floating shell companies and indulged in fraud of Rs 2,000 crore. According to official estimation, Chowdary reportedly evaded tax for an amount of Rs 500 crore.

During the primary investigation, the GST officials found that 8 to 9 shell companies which were working in Hyderabad have indulged in huge financial transactions and evaded the tax. Reportedly the companies indulged in the fraud of Rs 1,284 crore and the eight shell companies which did the financial transactions have reportedly evaded the GST tax of Rs 250 crore. They also found that one of the shell company has evaded a tax amount to the tune of Rs 17 crore and another company did fraud of showing Rs 56 crore as its turnover.

During the primary investigation, GST officials reportedly found that the shell companies without buying any products and selling any products, created fake invoices and registered the fake turnovers on paper. They also found that without paying the GST, the companies got 'Input Tax Credit' and further by showing it took huge loans from bankers.

There is a provision in the GST law that they can arrest a person who evade tax above Rs 5 crore. There are reports that a shell company director was arrested and sent him for 14-day judicial custody.