Latest news with #GSTDepartment
Indian Express
6 days ago
- Business
- Indian Express
‘Can't be subjected to harassment in this manner': Delhi HC raps GST dept over raids at advocate's office
Expressing disapproval over the raids conducted by the GST (Goods and Service Tax) department in the office of a practicing advocate, the Delhi High Court recently observed that 'advocate cannot be subjected to harassment in this manner' unless there is prima facie evidence with the tax body, reflecting the lawyer's involvement in alleged illegality. A division bench of Justices Prathiba Singh and Shail Jain, made the observation on July 28, while hearing a petition moved by the advocate Puneet Batra, challenging the GST department's search at his office on July 25. During the search, a Central Processing Unit (CPU) with 1250 GB of data was seized by the department. In his petition, Batra dubbed the seizure of the CPU and other documents by the tax body as illegal. The bench, in its order, had also sought the GST department's response to the petition. The case stems from a string of GST summons issued to Batra's tax consulting firm, M/s. Bass Legal LLP, in relation to their engagement with the gaming company Martkarma Technology. Batra's firm had been offering legal services to Martkarma since 2023. Martkarma's premises were subjected to a GST inspection on 4th to 5th September 2024. Batra, a member of the Delhi High Court Bar Association, claims that his team dropped the gaming firm as a client on September 6, 2024, after failing to contact them. Despite withdrawing legal representation, Batra notes, that he received a summons on September 22, 2024, to appear before the Anti-Evasion Branch, CGST (Central Goods and Services Tax ), Delhi East. In his reply, Batra stressed that he was merely a lawyer for the client, and the same was taken on record by the GST department. A few days later, on October 1, 2024, Batra received a second summons by the GST office, seeking his appearance. In response, Batra had sent a written representation at the time. The advocate notes that on June 10, he received the third summons, directing his appearance on June 12, which he failed to appear as he was travelling. The GST office on June 26, issued a fourth summons to Batra, asking him to appear on June 27, which he obliged to. Subsequently, on July 25, the Anti-Evasion Branch, CGST Delhi East, conducted a search at his firm. Days after the raid, a summons was again issued to Batra, to appear before the GST Department on July 28. Seeking the court's protection, Batra had argued before the bench that he had merely represented his client, and the GST Department is not empowered to resume any documents and seize his CPU. While referring to the summons and subsequent office raid, the bench, observed that an advocate cannot be subjected to harassment in this manner 'unless and until there is some material for the GST Department to show that the advocate himself is not merely representing his client but is also personally involved in the alleged illegality,' It it reiterated that for the same, some prima facie material would have to be shown by the GST Department. While underlining that the documents provided by a client to his lawyer are purely confidential and are protected by attorney-client privilege, the bench noted that it needs to be 'first satisfied as to in what manner a search and seizure was conducted'. In a relief to the advocate, the bench directed Batra that he need not appear before the GST department for the summons. The bench also ordered the GST department not to open the CPU. 'So far as the CPU is concerned, since it could consist belongings of other clients of the Petitioner, the same shall not be opened in any manner and the contents of the said CPU shall not be downloaded by the GST Department without the presence of the Petitioner or any of his Authorised Representative,' the court observed.
The Hindu
15-06-2025
- 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.
