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The Hindu
a day ago
- Business
- The Hindu
Andhra Pradesh GST Officers and Employees Association expresses concern over frequent transfers
SRIKAKULAM: Andhra Pradesh GST Officers and Employees Association's State Honorary President Chowdary Purushottam Naidu on Sunday (June 15, 2025) said the frequent transfers after almost every year caused agony to officials and staff in the Department. He requested the higher authorities concerned to consider the petitions submitted by the association and individuals for a hassle-free transfer procedure in all the zones and circles of the Department in the State. He said the officials and staff who were affected by transfers in the year 2024 have again come under transfer category as the 'Station Seniority' was taken into consideration for the implementation of transfers in accordance to Andhra Pradesh General Transfer-2025 guidelines. Currently, the GST Department has four zones stationed in Visakhapatnam, Kakinada, Vijayawada, and Guntur zones apart from 16 divisions such as Vizianagaram, Kurnool, Nellore and others. 'A majority of the officials and staff may be working in the same zone and division but their jurisdiction and responsibilities are different. They take care of GST collections of faraway places although they may discharge their duties from the same office. But they are affected by transfers every one year since norms insist on the transfer of officials and staff after every five years, if they function from same location. As far as GST officers and staff are concerned, they may work in the same complex but their role and functioning are different. That is why, we request the government to consider these points before taking a final decision on transfers under category of five years completion of the service at the same place,' said Mr. Purushottam Naidu while speaking to the media in Srikakulam. Along with Mr. Purushottam Naidu, the association president Allina Ramesh Kumar, associate president Rayi Venugopal and general secretary Kalyan submitted a memorandum to the Chief Commissioner of State Tax for issuing fresh guidelines to protect the interests of the officers and staff. According to them, it would benefit the Department also with continuation of taxes in a hassle-free manner. The officials and employees, who develop a rapport with dealers of various categories in the last few years, can function easily. The association has also requested exemption from transfers, of the persons with health issues and employees who were due for retirement in 2026.
Hans India
11-05-2025
- Business
- Hans India
Two arrested for Rs 4.2 crore GST fraud in Gujarat
Two people were arrested for claiming over Rs 4.2 crore in Input Tax Credit (ITC) through bogus invoices in Gujarat's Bhavnagar. The arrests come just days after a similar case involving Rs 8 crore was uncovered in Alang. In the latest action by the Bhavnagar Central GST Department, Rakesh Ganpat Rathod, proprietor of M/s Krishna Machine Tools and a partner in M/s R.R. Enterprises, a resident of Bhavnagar, was taken into custody. The identity of the other accused is being ascertained. According to GST officials, Rathod was operating a racket involving the issuance of fake bills to various suppliers in exchange for a 4 per cent commission. During interrogation, Rathod confessed to a well-orchestrated scheme: funds were temporarily deposited into the firm's bank account to simulate legitimate transactions, then withdrawn in cash, the commission deducted, and the balance handed over to a middleman. He also revealed that a chartered accountant facilitated the creation of fake accounts and the filing of bogus GST returns, charging 0.5 per cent commission per transaction. The department suspects the involvement of a wider nexus that includes a chartered accountant, a middleman, local Shroffs (money handlers), and Angadiya firms (informal couriers). Investigations into their roles have already been launched. Chandrabhan Maurya, proprietor of M/s Ruchi Steel in Alang, was jailed earlier this week for availing fake ITC worth over Rs 8 crore. To prevent further misuse, the GST Department has begun proceedings to cancel the GST registrations of M/s Krishna Machine Tools and M/s R.R. Enterprises. Officials confirmed that efforts are underway to recover the fraudulently claimed ITC. Authorities have reiterated that such fraudulent activities severely impact revenue and undermine the integrity of the GST system, promising further action against all entities involved. According to official data from the Central GST (CGST) and State GST departments, multiple high-value scams have been unearthed across cities like Ahmedabad, Surat, Rajkot, Vadodara, and Bhavnagar. The modus operandi often involves shell firms, forged invoices, and collusion between business owners, chartered accountants, and middlemen, including Angadiya firms and money handlers (Shroffs). In Bhavnagar, the GST Department has arrested individuals involved in scams exceeding Rs 12 crore in the last week. A common tactic involves creating fake firms to generate invoices for non-existent transactions, which are then used to claim ITC and evade tax liabilities. The suspects typically deposit funds temporarily into bank accounts to mimic legitimate trade before withdrawing the cash and redistributing it through informal channels. Chartered accountants have come under the radar for facilitating these transactions by filing fake returns for a commission. Recent crackdowns have also led to the cancellation of GST registrations and recovery proceedings against multiple entities. Officials said these scams not only hurt government revenues but also distort fair trade practices. With GST fraud cases rising steadily, enforcement agencies have ramped up surveillance, data analytics, and inter-departmental coordination to tackle the menace. Over Rs 500 crore worth of fake ITC claims have been detected in Gujarat over the past two years, prompting authorities to tighten audit procedures and adopt AI-based red flagging systems. Investigations are ongoing, and more arrests are expected as layers of the scam network are uncovered.
