Introduction
Recently, the State GST dept detected Rs 45cr tax evasion by four contractor firms involved in civil works. This action highlights the Revenue Department’s tightening surveillance on bogus billing and fake input tax credit (ITC) claims.
How the Rs 45cr GST Evasion Happened
According to official sources:
- Four contractors created fake invoices for civil contract works.
- They claimed input tax credit (ITC) without actual supply of goods or services.
- This resulted in wrongful availing and passing on of ITC worth ₹45 crore.
- The firms used shell entities to circulate fake bills and evade tax.
Reference: Similar fake billing rackets have been exposed under Section 132 of the CGST Act, 2017.
Legal Consequences for GST Evasion
The CGST Act treats such frauds strictly:
- Section 132: Deals with offences like issuing fake invoices or availing fraudulent ITC.
- Punishment: Up to 5 years imprisonment and heavy fines.
- Authorities may freeze bank accounts and seize properties involved.
👉 Read the official CGST Act provisions here.
How Taxpayers Should Stay Cautious
If you’re a business owner or consultant:
✅ Verify vendor GSTIN on the GST portal.
✅ Match invoices with actual goods/services received.
✅ Reconcile GSTR-2B with purchase records.
✅ Avoid transactions with unknown or suspicious vendors.
Expert Tip: Prevent Fake Billing Issues
Efiletax Insight:
Always cross-check if your suppliers regularly file GSTR-1 and pay tax. Non-compliance by vendors can block your genuine ITC claims.
Similar Cases and Trends
States like Maharashtra and Gujarat have recently cracked down on fake contractors. In FY 2024–25 alone, over ₹20,000 crore worth of fake ITC claims were under scrutiny, as per CBIC reports.
FAQs
Q1: What is the penalty for GST evasion?
If the evaded amount exceeds ₹5 crore, imprisonment up to 5 years is possible under Section 132 of CGST Act.
Q2: How can small firms protect themselves?
Use only verified vendors. Do regular ITC reconciliation. Consider professional GST audit support.
Key Takeaway
State GST dept detects Rs 45cr tax evasion — a reminder to maintain transparent records, avoid fake invoices, and stay compliant.
Conclusion
Efiletax helps you stay ahead of complex GST rules and avoid costly compliance mistakes. ✅ Talk to our GST experts for safe, reliable GST filing and audit support.
Summary
The State GST dept detects Rs 45cr tax evasion by four contractors using fake invoices and shell firms. Learn the legal impact, penalties, and tips to stay safe from similar frauds. Stay updated and file GST correctly with Efiletax.