MM TAX CLUB

Parts of the multi-crore bogus billing scam have begun unfolding. Three persons were arrested by Bhavnagar Police on Tuesday, for conning unsuspecting Aadhaar card holders to go to Aadhaar centres where the mobile number linked to their Aadhaar identity would be changed.

The three persons arrested are Sajid alias Sajju, Kunal Rathod and Vimal Makwana. “People were called to the Aadhaar centre at the Bank of Baroda branch near Virani Circle in Bhavnagar and to the Common Services Centre near Chavdi Road in Bhavnagar. After their Aadhaar data was tampered with, their IDs were used to obtain bogus GST registrations,” the FIR states.

Sources in the SGST said the trio are part of a larger syndicate involved in fake billing. After searches at 25 Aadhaar facilitation centres last week, a total of 2,725 Aadhaar cards were found to have been tampered with, with their linked mobile numbers modified.

According to the FIR filed against the three, “Makwana would promise poor people new mobile numbers saying they could get the benefits of government schemes. He would pay Rs 700 to each person who got their mobile number modified.”

The new mobile numbers entered were operated by the scamsters and the Aadhaar cards would then be used to obtain GST registrations.

Investigators said Sajid would pay Rathod for every compromised Aadhaar card they got. Makwana was in turn given Rs 1,000 per Aadhaar cardholder he could get and would keep Rs 300 as his commission. Rs 700 was paid to the Aadhaar card holders, the FIR states. SGST officials are still computing the extent of the evasion and bogus billing in this case.

In the past, four persons were arrested from Palitana in Bhavnagar district for modifying Aadhaar card information of people and using them to obtain GST registrations fraudulently.

Police and SGST officials are identifying other links in the case to nab the kingpin.

Chief Commissioner CGST Goyal and the state GST Commissioner Jatav have seriously taken into account the problems, difficulties and suggestions presented in the meeting.

Indore (Madhya Pradesh): Navneet Goyal, chief commissioner of the Central GST (CGST) of MP and Chhattisgarh, has said that no compromise can be made regarding the required documentation for the GST registration. He also assured that very soon the Appellate Tribunal of the GST would be set-up in the State.

Senior IRS officer said this while addressing the meeting of regional GST grievance redressal committee held virtually on Thursday. State GST commissioner, Lokesh Kumar Jatav, additional commissioner CGST Dinesh Bisen, additional commissioner, state GST, Tanvi Hooda and other top ranking officers were also present in the meeting.

Chief Commissioner CGST Goyal and the state GST Commissioner Jatav have seriously taken into account the problems, difficulties and suggestions presented in the meeting. They assured

that meaningful efforts will be made to find out the solutions of the problems presented in the meeting. These would be presented before the GST Council.

The members of the committee submitted their suggestion for improving the bottlenecks present in the GST regime. Goyal also took  suggestion to increase the GST collection from the current level of around Rs 1.50 lakh cr. per month to Rs 2.00 lakh cr. or above.

Advocate Ashwin Lakhotia, who is also the president of MP Tax Law Bar Association, said GST was implemented in the country with the concept of ‘one nation, one market and one-tax’. That is, uniform tax-system can be operated in the entire country, but in the last 5 years, the GST law described provisions, rules and its implementation are beyond this sentiment. It was considered as an integrated-tax law system. Thus, the GST Council should ensure the basic objectives of GST and its simple implementation and remove many anomalies that exist, only then this indirect tax law system (GST) will be considered as a successful one.

CA Krishna Garg, suggested such commodities and services, wherein there are more changes of tax evasion should be considered in the reverse charge mechanism (RCM).

Tarun Vyas, Secretary of Association of industries of Madhya Pradesh, Ramesh Khandelwal, president of Ahilya Chamber of Commerce and Industry also presented their suggestions

The state GST department in Gujarat Tuesday said it has apprehended Irfan Sabbirhussain Kazi, the mastermind who set up 10 fake companies, made counterfeit bills worth Rs 83 crore and passed on tax reliefs worth Rs 15 crore to beneficiaries.

The department officials said in a statement that Kazi used to lure unsuspecting people, use their Aadahar Cards and Pan numbers to create fake companies and get illegal GST registrations.

Without conducting any real transactions, the accused would issue fake bills.

In 49^th GST council meeting, the council had recommended to exempt Rab or loose jaggary when its sold unpacked or pre-packed while for the pre-packed and labelled 5% GST was proposed.

Now vide notification no. 04/2023 -Central Tax (Rate) dated 28th February, 2023 CBI has notified the said provision, the extract of notification can be read as under;

Notification No. 04/2023-CentralTax (Rate)

— In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No.2/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 674(E), dated the 28th June, 2017, namely:-

In the said notification, in the Schedule, against S. No. 94, in Column (3), after the item (ii) and the entries relating thereto, the following item and entry shall be inserted, namely: -

“(iii) Rab, other than pre-packaged and labelled”.

This notification shall come into force on the 1^st day of March, 2023

Corresponding notification have been issued under Integrated Tax and Union Territory Tax to effect the same under respective act.

In 49th GST council meeting, conducted on 18th February 2023, the council had recommended Changes in GST rates of Goods and Services as follows;

Now vide notification no. 03/2023 -Central Tax (Rate) dated 28th February, 2023 CBI has notified the said provision, the extract of notification can be read as under;

Notification No. 03/2023-CentralTax (Rate)

—In exercise of the powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June, 2017, namely: -

In the said notification, -

i. in Schedule I –2.5%, against S. No. 91A, in column (3), for the entry, the following entry shall be substituted, namely: -

            “Jaggery of all types including Cane Jaggery (gur), Palmyra Jaggery, pre-packaged and

labelled; Khandsari Sugar, pre-packaged and labelled; Rab, pre-packaged and labelled ”;

ii.  in Schedule II –6%, after S. No. 186 and entries relating thereto, the following S. No. and entries shall be inserted, namely: -

iii. in Schedule III –9%, against S. No. 302A, in column (3), at the end, the brackets and words “[other than pencil sharpeners]” shall be inserted.

This notification shall come into force on the 1^st day of March, 2023

Corresponding notification have been issued under Integrated Tax and Union Territory Tax to effect the same under respective act.