A scam has been unearthed in Uttar Pradesh with fraudsters using hand pumps for claiming fake refunds using Inverted Duty Structure (IDS) under GST mechanism. Very few goods under GST fall into IDS category and hand pump is one of them. Efforts will also be taken to identify the recipients to whom such non-existing taxpayers have passed the input tax credit and to identify the mastermind and act. Fake invoice means no real supply of goods or services but simply invoice issuance, which is used fraudulently to avail input tax credit (ITC). Unscrupulous elements misuse the identity of other persons to obtain fake/ bogus registration under GST to defraud the Government.

Source: The Hindu February 28, 2024 21:29 UTC