Hyderabad: CTD busts illegal GST refund fraud by three firms; arrests Cemetrix IT Solutions director Rajesh Guptha
It was noticed that some people had floated three firms to receive GST refunds illegally
By Newsmeter Network
Hyderabad: Commercial Taxes Department (CTD) has unearthed a major GST refund fraud by three Hyderabad firms.
Based on the desk audit conducted by the Commissionerās office, it was noticed that some people had floated three firms to receive GST refunds illegally. During the investigation, it was revealed that they had received Rs.25.65 crore as a refund through illegal means.
Of the three firms, Naskon Associates LLP received Rs. 5.56 crore, Naskon Soift Solutions Pvt Ltd received Rs.14.02 crore, and Cemetrix (IT) Services Private Ltd received Rs 6.05 crore.
The details of preliminary findings were sent to the jurisdictional Joint Commissioner, Madhapur Division.
It was noticed that Rajesh Guptha Kotha & Shilpa Banda are Directors for Naskon Soft Solutions Pvt Ltd and Cemetrix (IT) Services Private Ltd . Prasen Kumar Puvvala & Shilpa Banda are partners in Naskon Associates LLP.
Naskon Associates LLP were C&F Agents for ITC Limited dealing in cigarettes, food items, etc. They had passed on ITC to Cemetrix (IT) Services Private Ltd which is said to be an exporter of services.
Naskon Associates LLP had taken a GST refund of Rs.5.56 crore under `Any Other Categoryā without having any ITC in the credit ledger or without any cash in the cash ledger.
Cemetrix (IT) Services Private Ltd took a GST refund of Rs.6.05 crore based on the ITC received from some of the fraudulent taxpayers including Naskon Associates LLP.
Naskon Soft Solutions Pvt Ltd took GST refunds of Rs.14.02 Cr based on the fake ITC from some fraudulent taxpayers including Cemetrix (IT) Services Private Ltd.
Based on the findings, authorization was issued by the Joint Commissioner, Madhapur Division to conduct an inspection of Cemetrix IT Solutions Pvt LTD and a search of the house of Rajesh Guptha, one of the directors. Certain incriminating material was recovered during the operation.
Further interrogation of Rajesh Guptha revealed that they had taken GST refunds of Rs.25.65 crore fraudulently which is a cognizable & non-bailable offence under the GST Act.
Accordingly, Rajesh Guptha Kotha was arrested by GST officers of Madhapur Division and produced before the Special Judge for Economic Offences Court, Nampally. He was remanded for judicial custody for 14 days.
Further investigation is under process.
