Telangana’s Rangareddy CGST detects Rs 5.68 crore GST evasion; proprietor arrested
Hyderabad, Sept 25 (TNT): The Anti-Evasion Section of the Rangareddy CGST Commissionerate has detected an alleged GST evasion of about Rs 5.68 crore through fraudulent registration of a firm as a Special Economic Zone (SEZ) unit, with the alleged mastermind arrested, officials said.
Acting on specific intelligence, officers conducted search and inspection proceedings at the principal place of business of M/s Sri Tirumala Services at Palwancha in Bhadradri Kothagudem district and at the residence of its proprietor, Dara Ravi Kishore, on Thursday.
The investigation allegedly revealed that Ravi Kishore had obtained GST registration for the firm by falsely declaring it as an SEZ unit, enabling it to procure goods as zero-rated supplies without payment of GST despite being ineligible for the benefit, the CGST Commissionerate said in a statementon Friday.
During verification, the Letter of Approval purportedly issued by the Development Commissioner, Visakhapatnam Special Economic Zone (VSEZ), on the basis of which the firm had claimed SEZ status, was found to be bogus and fabricated, it said.
The GST evasion has been worked out at about Rs 5.60 crore on taxable supplies of approximately Rs 30 crore, while the total amount detected, including applicable components, was stated as Rs 5.68 crore.
Ravi Kishore was arrested on September 24 under Section 69 of the Central Goods and Services Tax Act, 2017, and produced before the jurisdictional court.
The court remanded him to judicial custody for 14 days.
Further investigation is underway.
The Principal Chief Commissioner, Central Tax and Customs, Hyderabad Zone, and the Principal Commissioner, Rangareddy CGST Commissionerate, reiterated the department’s focus on detecting tax evasion, fraudulent availment of statutory benefits and clandestine removal of goods without payment of GST.
They said stringent action, including prosecution wherever warranted under law, would be initiated against persons found involved in such fraudulent activities.
TNT TS
