Telangana Commercial Taxes Department has unearthed an illegal GST (Goods & Services Tax) refund of ₹25.65 crore allegedly by three firms following searches and raids by the officials on three firms allegedly involved in the racket, on Thursday.
The three firms in the dock are – Naskon Associates LLP, Naskon Soft Solutions Pvt Ltd and Cemetrix (IT) Services Private Ltd. Their method of obtaining refunds illegally was unearthed after a desk audit conducted by the Commissioner’s Office, said an official release.
The Input Tax Credit accumulated on goods cannot be claimed as refund from Export of Services as per law but in this case it was claimed fraudulently. Also, there cannot be any accumulation of input tax credit on Fast Moving Consumer Goods or FMCG. Hence, passing on the credit from the first dealer itself is being scrutinised.
The jurisdictional officers concerned have further verified the genuineness of refunds taken and it was noticed that the directors and partners of the companies had conspired to take the refunds illegally. One of the directors Rajesh Guptha was arrested by GST officers of Madhapur division and was produced before Special Judge for Economic Offences Court, Nampally. He was remanded for judicial custody for 14 days. Further investigation is under process, added the release.
