The Divisional officer of CGST Commissionerate in Coimbatore has nabbed a tax consultant for allegedly defrauding the department of ₹36 lakh.
The consultant, the department found, was running a firm to file GST returns and other liaison work on behalf of his clients. The issue came to light when the divisional officer found that the concerned GSTIN registrant had not paid the dues since March 2018
Summons were issued by the department to the GSTIN registrant notifying about the dues. According to a department official, “the receipts and supply details as declared in the respective GST returns showed nil payment of GST in GSTR 3B from March 2018 and showing the GST involved in supplies in GSTR 1.”
It is learnt that the tax consultant would ask the GSTIN registrant to transfer the GST liability to his account, provide forged challans to the client and hold on to the money (without filing).
Due to this fraudulent act of the consultant, the GSTIN registrant was compelled to remit his GST liability with interest.
And this fraud, department sources say “is just the tip of an iceberg” as a similar incident has come to light against the same consultant/auditor.
The Commissionerate has issued a Trade Awareness Notice to sensitise the public against engaging such tax consultants/auditors without checking their credentials. “Filed GST returns and books of accounts are to be kept with the GSTIN registrants only; filed GSTR-1 and GSTR-3B returns can be checked directly from the GSTN site by downloading them every month. This will help avoid such bitter experience,” VK Vamshadhara, Joint Commissioner, Office of the Principal Commissioner of GST and Central Excise, Coimbatore said.
