GST Raid Uncovers Tax Evasion at Wave Group in Ghaziabad
Ghaziabad, September 21, 2024: In a major crackdown on alleged tax evasion, the Goods and Services Tax (GST) department conducted a 24-hour GST raid at multiple locations linked to Wave Group, a prominent real estate company, on September 20. The search operations were carried out simultaneously in Delhi, Ghaziabad, Noida, and Moradabad.
According to Dinesh Kumar Mishra, Additional Commissioner, Grade-1, State Tax Department, the department’s Lucknow-based Tax Research Unit (TRU) had received intelligence about GST irregularities in two firms associated with the Wave Group. Consequently, the special investigation branch of the Ghaziabad Zone-I was tasked with probing the matter.
The raid, which commenced on the morning of September 20, revealed several irregularities, including:
- Bogus Billing: The investigation revealed that the Wave Group had purchased goods from bogus firms to evade taxes.
- ITC Mismatch: There was a significant mismatch in the input tax credit (ITC) claimed by the group, indicating a potential chain of fraudulent transactions between different firms.
- Under-reporting of Tax Liability: The GST returns filed by the firms were found to under-report the actual tax liability.
On-the-spot Recovery: Based on the preliminary findings, the GST department recovered a substantial amount of ₹6.21 crores from the two firms. Additionally, crucial documents were seized to further the investigation.
Undeclared Premises Sealed: During the raid, the investigation team discovered an undeclared business premises in Ghaziabad, where staff was found working. This premises was subsequently sealed.
Reasons for the Raid:
The GST department’s action was triggered by intelligence suggesting that the Wave City had been involved in creating a complex network of shell companies to avail of fraudulent input tax credits and evade GST payments.
The raid highlights the department’s ongoing efforts to curb tax evasion and ensure compliance with GST regulations. The investigation is still underway, and further actions may be taken against the group based on the findings.
Tags:- GST Raid in Wave City, GST Raid in Wave Group,
Sources:- Wave City | Jagran | NBT | Dainik Bhaskar | Amar Ujala | जनपक्ष