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52 thousand crores stolen in 13 thousand crimes of GST theft in 4 years in Gujarat
Has GST proved to be useless?
52 thousand crores were caught but less came, who is eating the cream?
Dilip Patel
Ahmedabad, 5 December 2024
In the last four years, 12,803 cases of GST – Goods and Services Tax – theft were reported in Gujarat. 101 thieves were arrested under Section 69. 3 thieves were named in three FIRs of the Indian Judicial Code. This case has been done by the officials of the Central GST Office. Stealing has become a business. But, Prime Minister Narendra Modi has not made a theft-proof, tamper-proof, law.
Finance Minister Nirmala Sitharaman gave information about the business till 30 October 2024 in Parliament.
But she did not give details of some of her party leaders being involved in theft.
Big thieves of Gujarat
Sitharaman gave details of 4 years, but the theft is really big. Since the implementation of Goods and Services Tax till November 2024, tax evasion of Rs. 52 thousand 394 crores was detected.
There were many people who were accused of theft or committing a crime.
Between 2017 and June 2024, 13 thousand 494 cases of GST theft were reported in Gujarat, which also includes theft and adultery. In which only 214 thieves were arrested. Others were released without police complaint. Rs 9 thousand has been stolen per person.
There is a saying in the world of thieves, theft becomes theft when caught. What about those 90 percent of thieves who are not caught? The theft that is not caught is very big. Per person Rs. 1 lakh can be stolen in 7 years.
Gangs were working to carry out such treacherous behavior secretly or unknowingly. Gujarat has been turned into a country of thieves. When a manufacturer or trader buys goods, he pays tax on it. When he sells goods, he collects tax. Thus, the difference between the two taxes is adjusted as input tax credit and the tax department collects the money. This is called input tax. There is a big uproar in input tax. Modi government has imposed goods and services tax but now billions of rupees are being stolen due to its loopholes.
The highest number of crimes of preparing fake goods and services tax documents secretly, privately, are being registered in Gujarat. There was a 49% increase in fraud cases in a year. The average crime elimination rate was 12.71%. In case of theft, that is, theft was less punishable when prosecuted.
241 cases of fake bills were reported in Gujarat, 227 in West Bengal, 186 in Haryana, 168 in Assam, 143 in Rajasthan, 130 in Maharashtra, 122 in Karnataka and 105 in Delhi.
Many cases of theft and adultery were going on simultaneously.
On 30 March 2024, 1999 cases of fake input tax credit claims of Rs 19,260 crore were caught. 1,940 crimes of Rs were registered on the basis of fake documents. Refund of Rs 13,175 crore was sought. Out of which only Rs. 1597 crore was recovered.
Implementation
This has left loopholes in the law for thieves to do it secretly or privately. Goods and Services Tax (GST) was implemented in India from 1 July 2017. In the history of Indian taxation, it has become a tax written in black letters instead of being written in red letters. The new taxes may have increased the GDP, but thieves have had a good time. It was implemented as the principle of one India, one tax. However, 26 types of taxes are levied in Gujarat.
The law has become a hooliganism or a kind of masala.
50 thousand thief companies
Companies are seen doing both theft and raids. In September 2024, it was announced to form 1 thousand squads and investigate 2500 places in Gujarat. In November 2024, in the investigation of 73000 companies of the country, 18000 companies were found to be fake. Fake companies were evading goods and services tax worth Rs. 24550 crore. Earlier, 21791 fake companies were detected. Most of the 50 thousand thief companies were from Mumbai and Gujarat.
Irregularities in registration
3.38 lakh GST registrations were canceled in three and a half years. In 2024, 50,298 registrations were canceled between April and June. On an average, 95 thousand to 96 thousand registrations are canceled from Gujarat every year. The government’s lie was exposed in response to a question asked by Rajya Sabha MP Parimal Nathwani. However, within 7 months after the launch of GST Seva Kendra in November 2023, the number of applications is claimed to have declined by 17 to 55 percent, an average of 25 percent, as compared to 2022. Still, theft is being done through fake registrations.
Reasons
The reasons include closure or closure of business, death of the owner, failure to file returns, amalgamation of business, non-compliance with the provisions of the law, change in business structure, invalid bank account, fraud, deliberate misrepresentation or registration of facts.
Revenue
In the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary told about the GST revenue during the last five years. Theft is like gnashing teeth, the law has to be changed again and again.
Revenue in the year 2023-24 in Rs. 20.18 lakh crore. Rs. 2.08 lakh crore was refunded.
Revenue in 2022-23 Rs. 18.08 lakh crore. Refund of Rs. 2.20 lakh crore was given.
Revenue in 2021-22 Rs. 14.83 lakh crore. Out of this, 1.83 lakh
Crore rupees were refunded.
In 2020-21, the revenue was Rs. 11.37 lakh crore. A refund of Rs. 1.25 lakh crore was given.
Revenue from April to August 2024 was Rs. 12.74 lakh crore. A refund of Rs. 1.47 lakh crore was given.
Tax evaders in the country
Avoid theft as soon as the measures are implemented
In 2023-24, Rs. 2 lakh 1 thousand crore of Goods and Services Tax evasion was detected. This theft was detected in 6 thousand 84 crimes. There was a 100 percent increase in theft.
In 2022-23, in 4 thousand 872 crimes, Rs. 1 lakh 1 thousand crore of tax was evaded.
Attack like theft; Looting started in Vera. Tax evasion 46 percent of the crimes are non-payment of taxes. Supply of goods secretly and supply of goods at a lower price etc.
20 percent of the crimes are related to fake input tax credit (ITC).
19 percent of the crimes are related to misuse/non-reversal of ITC.
Online gaming has the highest number of thieves.
In 2023-24, 78 crimes were reported in online gaming. Tax evasion of Rs. 81 thousand 875 crores was detected.
In 171 crimes related to banks, moneylenders, insurance companies, Rs. 18 thousand 961 crores were detected. 343 cases were registered against contractors who provided Rs. to the employees. 2 thousand 846 crores and in 22 cases against drug manufacturers and sellers, tax evasion of Rs. 40 crores was detected.
In 1976, crimes in iron, copper, scrap and alloy business were detected. Tax evasion of Rs. 16 thousand 806 crores was detected.
In 2024, Mumbai had the highest tax evasion in the country, with Rs. 70 thousand 985 crores of Goods and Services Tax evasion detected.
In Delhi, Rs. 18 thousand 313 crores in Pune. 18 thousand 328 crores, Rs. in Gurugram and Rs. 15 thousand 502 crores in Hyderabad. Theft of 11 thousand 81 crores was caught.
Crime of theft of 200 crores
Ahmedabad Crime Investigation Police Branch has arrested 4 accused by raiding 14 places. 200 obtained fake input tax credit of crores of rupees by registering fake companies evading goods and services tax by giving fake billing, forged documents and false information.
In which a complaint has been filed against MLA Bhagwan Barad’s son Ajay Bhagwanbhai Barad, nephew Vijaykumar Kalabhai, Barad and Ramesh Kalabhai Barad.
Accused and journalists Mahesh Langa, Abdul Qadri, Ajaz Maldar and Jyotish Gondalia have been arrested. DGGI Zonal Director Himanshu Joshi has filed a complaint of GST theft in Ahmedabad Crime Branch. In which the accused had registered a fake company in the name of Dhruvi Enterprises of Ahmedabad and through this company, they defrauded the government by stealing the Goods and Services Tax by getting tax credit. Mahesh Langa formed a firm named DA Enterprises in 2021. Which is associated with construction.
In the tax evasion scam of 200 crores, the police investigated the office of Gujarat Maritime Board. Information related to ports was obtained and given to politicians instead of printing it. Mahesh Langa was in constant touch with IAS officers including Kailashnathan. Journalist Mahesh Langa is also accused of stealing GST of about Rs 200 crore by creating fake companies.
Theft of 1100 crores
In Bhavnagar, the theft of Goods and Services Tax of Rs. 1102 crores was caught. When 15 accused were caught, it was found that they were stealing by creating 460 fake firms. Aadhar cards and PAN cards of illiterate and poor people were used by the gang to buy new SIM cards for phones. On the basis of that, they used to get new registration number online from the website. They were making fake bills. 4 police complaints were received in Palitana, Nilambag, Amreli.
Rs. 6 thousand crore theft
The country’s biggest Goods and Services Tax thief of Rs. 2700 crore caught from Surat! The main kingpin was Sufiyan Kapadia. Earlier Sufiyan was the Central GST Commissioner. He was accused of tax evasion of Rs. 3300 crore. In this way, tax evasion of Rs 6 thousand crore was alleged from Gujarat and the country.
Out of the 1500 companies investigated in the case, 1300 companies were from Gujarat and 250 companies were from outside Gujarat.
Earlier 19 accused were arrested. 35 fake firms were opened and input tax credit was obtained on the basis of false documents. Sufiyan’s Sagarit Usmani Rafikbhai Katani was arrested from Bhavnagar. Both used to steal from Bhavnagar and Surat.
Fake bills worth Rs 900 crore were created in connivance with Ahmedabad tax consultant Dharmesh Gandhi.
Ganesh and Gopi created bills in the business firm.
Laptops-16, Mobiles-25, Cash 2.24 lakh, CPU-3, Hard Disk-2, ATM-24, PAN Card-6, Coin-69, Check Books of different generations-19 were seized.
15 thousand crore scam
In April 2023, it was considered the biggest GST scam in the government treasury, in which Rs 15,000 crore was stolen. The scope of this scam was spread to Bhavnagar, Surat, Dhandhuka and Bharuch. But then everything was hidden. Neither the government nor the GST officials have announced how much money has been returned.
Modi failed for the second time
On June 20, 2029, in the first meeting of the Goods and Services Tax Council in the second term of the Modi 2.0 government, a company-to-company transfer of Rs. Proposal to generate e-invoices on a centralised government portal for business of Rs 50 crore and above. In 2017-18, 68041 companies had a turnover of Rs. 50 crore or more. These companies contribute 1.02 per cent to tax revenue. However, their share in business-to-business voice generation is about 30 per cent. No breakthrough.
Why no dice rule Farmers in Gujarat
The government can give the farmers their rightful water in their fields
If there was no water, the Chief Minister ordered to implement the law on farmers in 2024 for taking water from canals or dams. But traders and thug gangs are looting billions of rupees from the government, but in 99% of the cases, no police complaint is lodged against them. The stolen money is not returned. Complaints are coming that officers and leaders are in collusion with each other.
Former BJP MLA’s brother is a thief
On December 27, 2024, a Rs 500 crore Goods and Services Tax scam was caught, in which Hardev Singh, brother of former Gondal MLA Jayraj Singh, was found involved. The Director General of Goods and Services Tax Intelligence was to work in input tax credit. Theft of low value and some fake bills was caught.
Hardev Singh Jadeja’s firm Ashapura Enterprise was raided in Rajkot. Ashapura Enterprises was showing high speed diesel imports from Mudra and Kandla ports. Fake bills were also made. Tax evasion of more than that amount could be detected but people do not know what happened after that. There is some mix-up somewhere. (Google translation from Gujarati)
