Chandigarh, July 31 Based on specific intelligence, Central GST Ludhiana in Punjab on Thursday said it has conducted investigation against multiple firms in the field of audio-video productions and unearthed GST evasion of Rs 62 crore and arrested two people.
Prima facie, it appears that these firms have imported services worth Rs 342 crore from overseas entities and evaded GST, it said in a statement.
Investigation further revealed that they have not followed any documentation process mandated as per GST laws, which shows the blatant nature of tax evasion.
The two people who are involved in creating and operating these multiple firms were arrested on Wednesday.
With the two arrests made so far in this case, the investigation is ongoing to uncover the full extent of the network and the quantum of GST evasion involved.
The CGST Ludhiana Commissionerate reaffirms its commitment to detecting tax fraud and thus ensuring a level playing field for honest taxpayers.
In a similar case, CGST Ludhiana last week conducted multiple search operations in Mandi Gobindgarh in Fatehgarh Sahib district and unearthed a syndicate involved in availing and passing on fake Input Tax Credit (ITC) in the iron and steel sector using five firms.
During the search operations, the officers had uncovered a modus operandi involving the acquisition of debt-ridden rolling mills, which were used as fronts by scamsters to avail and pass on fake ITC, thereby evading the scrutiny of GST enforcement agencies.
Following the search operations, two people, who were operating and controlling these firms, were arrested on July 24.
As per the preliminary assessment, the quantum of bogus bills stands at a staggering Rs 260 crore, resulting in a GST loss of Rs 47 crore to the exchequer.
With the two arrests, the investigation is ongoing to uncover the full extent of the network and identify other entities involved, said the CGST.
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