Latest news with #CommercialTaxes
The Hindu
11 hours ago
- Business
- The Hindu
Major tax fraud uncovered in Telangana; bogus copper supplies used to claim ₹33.2 crore input credit
The Telangana State Commercial Taxes department has exposed a tax fraud involving M/s Keshaan Industries LLP, a Hyderabad-based private firm. The company is accused of generating high-value tax invoices without any actual movement of goods. Following credible intelligence, inspections were carried out at the company's corporate office on SP Road in Hyderabad, a godown in Bansilalpet, Secunderabad, and two factory units located in Kalakal Automotive Park and Muppireddypally villages in Medak district. Commissioner of Commercial Taxes K. Haritha said the company issued invoices for the supply of copper materials, but vehicles left Telangana empty while documents falsely showed they were transporting goods to Maharashtra. 'Toll gate records obtained from the National Highway Authority of India confirmed that vehicles passed through key checkpoints without carrying any cargo, contradicting the details in the e-way bills,' she explained. Preliminary findings suggest that fraudulent invoices worth over ₹100 crore were generated in this manner. The company allegedly availed Input Tax Credit (ITC) of approximately ₹33.2 crore using these false transactions, thereby lowering its tax liability. This method of raising invoices without actual supply of goods has been described by the Commissioner as the first such case detected in Telangana. 'The department considers it a serious development indicating a new and sophisticated form of GST-related fraud,' she said. During the inspections, officials seized crucial documents, including books of accounts, registers, hard disks and CCTV footage. A formal complaint has been filed with the DCP of the Central Crime Station (CCS) in Hyderabad, requesting the registration of a criminal case against the company's directors, Vikash Kumar Keeshan and Rajneesh Keeshan. In a related incident, another case of fraudulent e-way bill generation has come to light. Majid Hussain, Deputy State Tax Officer from Mehdipatnam 1 Circle, Charminar division, found that vehicle number AP29TA7213 had remained immobile since June 2025. Despite this, several e-way bills were generated using the same registration number by different taxpayers. There was no movement of goods. This act is considered a violation of the CGST Act, 2017, and is suspected to involve criminal intent under Sections 318 and 336 of the BNS. A separate complaint has been filed, seeking the registration of an FIR against the vehicle owner.
The Hindu
11 hours ago
- Business
- The Hindu
CM directs Commercial Taxes dept. to curb evasion of GST
Chief Minister A. Revanth Reddy has directed the Commercial Taxes department to take steps to curb evasion of payment of Goods and Services Tax. The department was asked to ensure that all the tax assessees under GST paid their taxes in time. At the same time, the department should set up a call centre to clear doubts among the tax payers. The department could leverage artificial intelligence in ensuring effective operation of the centre. The Chief Minister reviewed the functioning of the department late on Tuesday night. He wanted the officials concerned to study the implementation of GST and collection of other taxes in other States and replicate the best practices being adopted there. Steps should also be initiated to provide efficient services to the users in the offices of the Commercial Taxes department.
Hans India
7 days ago
- Business
- Hans India
Won't pursue 2-3 years old cases, assures CM
Bengaluru: With small traders in Karnataka going on the warpath over the government issuing GST notices based on UPI transactions and the opposition backing them, the state government on Wednesday announced that cases ranging between 2-3 years won't be pursued, prompting the trade bodies to call of their proposed agitation on July 25. Although, the government asserted that the action of issuing notices was within the framework of law. On Wednesday, Chief Minister Siddaramaiah held discussions with traders' associations, which raised concerns about confusion over the GST notices, many of which include loan amounts and personal transactions. State BJP President B Y Vijayendra accused the CM of setting targets for the Commercial Taxes Department, which had issued the notices to small and micro traders. While urging the government to withdraw the notices, the main opposition party also extended its support to the traders' earlier call to strike work on July 25. The CM said that old tax arrears will not be pursued, provided all such traders register under the GST Act and begin paying Goods and Services Tax moving forward. 'I told the traders not to go on strike or stage a demonstration at Freedom Park. They have agreed to withdraw their agitation,' the CM told reporters after meeting with the trader community. He added that 'we will not collect taxes from traders dealing in exempted goods, even if notices have been issued. I have also instructed officials not to pursue cases related to notices for clearing arrears from the past two to three years.' The chief minister said the government will not pursue these arrears and will ensure traders do not face problems—provided they register with the Commercial Taxes Department. 'Traders must register. Registration is mandatory because everyone needs to be brought within the tax net,' he said. He clarified that businesses dealing exclusively in exempted goods will not be required to register. The chief minister, in a statement, said that notices were issued only to traders with UPI transactions exceeding Rs 40 lakh, primarily to prompt GST registration. Siddaramaiah reaffirmed his commitment to supporting small traders and ensuring lawful business said the government will assist in timely tax payments and strengthen the existing helpline for better accessibility. Meanwhile, Meera Suresh Pandit, Joint Commissioner of Commercial Taxes, clarified that notices are not final tax demands and the recipients have the right to respond with supporting documentation. If the reply is convincing or the goods and services are exempted under the GST Act, notices will be dropped. The top tax official termed the issuing of notices as within the framework of law. 'When a person reaches the threshold limit of Rs 20 lakh for services or Rs 40 lakh for goods, it is mandatory for the person to get registered under the GST Act to take registration and declare his turnover,' the officer told PTI. 'The registration empowers the trader to collect taxes from the consumers and pay it to the government. These taxes are meant for the government, but when the dealers collect them and fail to remit them, they are treated as unregistered persons, and we issue notices accordingly,' she added. The department, she said, cannot individually identify every trader evading registration. Instead, the Services Analysis Wing at the department's head office used reliable sources such as UPI transaction data to flag potential defaulters. 'If a person has transacted over Rs 20 lakh for services or Rs 40 lakh for goods in a year through UPI, it indicates that they may be liable to register under GST,' Pandit said, adding that notices were based only on preliminary data, not final determinations. Trade activist Sajjanraj Mehta raised concerns over the fairness of the recent GST stated that while the Commercial Taxes Department is legally within its powers to use such data, the lack of prior warning, context, and education has created confusion. 'Many small traders were unaware that their UPI inflows, often a mix of business and personal transactions, would be treated as undeclared turnover,' Mehta said.
New Indian Express
23-07-2025
- Business
- New Indian Express
GST notices based on UPI transactions: Karnataka traders on warpath; official tells action as per law
BENGALURU: Amid rising concerns among traders in Karnataka over the issuance of nearly 6,000 GST demand notices based on UPI transaction data, a top tax official has termed the action as within the framework of law. Traders' bodies have gave a strike call over the matter. Speaking to PTI, Meera Suresh Pandit, Joint Commissioner of Commercial Taxes, also clarified that notices are not final tax demands and the recipients have the right to respond with supporting documentation. If the reply is convincing or the goods and services are exempted under the GST Act, notices will be dropped, she added. Reacting to the issue of notices sent to traders based on UPI transactions, a number of traders associations in the state have given a call to the traders to boycott UPI transactions. They have also called for a strike on July 25. Responding to the proposed strike and calls to revert to cash-only transactions, Pandit explained in detail the rationale behind the notices. "When a person reaches the threshold limit of Rs 20 lakh for services or Rs 40 lakh for goods, it is mandatory for the person to get registered under the GST Act to take registration and declare his turnover," the officer told PTI. "The registration empowers the trader to collect taxes from the consumers and pay it to the government. These taxes are meant for the government, but when the dealers collect them and fail to remit them, they are treated as unregistered persons, and we issue notices accordingly." The department, she said, cannot individually identify every trader evading registration. Instead, the Services Analysis Wing at the department's head office used reliable sources such as UPI transaction data to flag potential defaulters. "If a person has transacted over Rs 20 lakh for services or Rs 40 lakh for goods in a year through UPI, it indicates that they may be liable to register under GST," Pandit said, adding that notices were based only on preliminary data, not final determinations. The officer said the department is not aware whether the turnover is entirely exempted, partially taxable, or fully taxable. That is why the notice includes a proposal to register and pay applicable taxes, interest, and penalties. "If the turnover is completely exempted from goods or services like tuition fees, the registration is not required. If the reply is convincing, the notice will be dropped and proceedings will close with a nil demand," Pandit clarified. She also addressed doubts prevailing among the trading circles. "Some innocent traders are being carried away, hoping every notice will be withdrawn. Some are being misled. But if they want relief within legal provisions, I request them to come to the department. We will guide them as per the law," the Joint Commissioner said. "Calling for a 'Bandh' will not serve the purpose. They may represent their concerns peacefully," she noted. On concerns that UPI alone doesn't reveal the full turnover, Pandit said, the "UPI transaction is only one indicator." "There could be other modes of payment like cash, card, or net banking. So, if they are not liable for registration, they must explain and support their claim through written replies or personal hearings." The department, the officer said, is open to engagement and has made extensive efforts to educate traders. "Prior to the rollout of GST in July 2017, we conducted door-to-door awareness programmes, workshops, and released educational videos," she said. "We also have helplines now across offices, and traders are coming forward to seek guidance... Even if traders fail to respond to the first notice, we send three reminders and conduct a field visit if necessary. Final assessment happens only after considering their response and facts," she said. "We strictly adhere to the principles of natural justice and ensure every opportunity is given. When you buy a plot, you go to the sub-registrar's office without being told. Likewise, traders should know applicable tax laws. Ignorance cannot be an excuse. The department is always there to guide," she said. Trade activist Sajjanraj Mehta raised concerns over the fairness of recent GST notices. He stated that while the Commercial Taxes Department is legally within its powers to use such data, the lack of prior warning, context, and education has created confusion. "Many small traders were unaware that their UPI inflows, often a mix of business and personal transactions, would be treated as undeclared turnover," Mehta told PTI. "The fairness issue lies not in enforcement itself, but in the suddenness and lack of clarity," he added. Mehta stressed that the department should differentiate between exempt and taxable goods before sending notices. Issuing notices without accounting for exempt goods like fruits, vegetables, or unbranded food items shows a lack of nuance, he claimed. "A more tailored, data-informed approach could have avoided unnecessary panic." Mehta acknowledged a growing trend among vendors in Bengaluru and Mysuru to shift away from UPI. "There is visible hesitation, especially in markets and grocery stores. Some vendors are reverting to cash or asking customers to avoid UPI. However, urban areas with tech-savvy customers still show strong digital payment usage," he underlined. According to him, traders are currently seeking clear guidelines on how UPI transactions are treated under GST, a mechanism to contest mismatches or clarify exemptions without immediate penalties and awareness programmes in local languages.
Time of India
23-07-2025
- Business
- Time of India
GST notices based on UPI transaction: Traders on warpath, official calls action proper
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Amid rising concerns among traders in Karnataka over the issuance of nearly 6,000 GST demand notices based on UPI transaction data, traders' bodies gave a strike call, while a top tax official termed the action to be within the framework of to the PTI, Meera Suresh Pandit, Joint Commissioner of Commercial Taxes, has also clarified that notices are not final tax demands and the recipients have the right to respond with supporting documentation. If the reply is convincing or the goods and services are exempted under the GST Act, notices will be dropped, she to the issue of notices sent to traders based on UPI transactions, a number of Traders Associations in Karnataka have given a call to the traders to boycott UPI transactions. They have also called for a strike on July to the reports of a proposed traders' strike on July 25 and calls to revert to cash-only transactions, Pandit explained in detail the rationale behind the notices."When a person reaches the threshold limit of Rs 20 lakh for services or Rs 40 lakh for goods, it is mandatory for the person to get registered under the GST Act to take registration and declare his turnover," the officer told PTI."The registration empowers the trader to collect taxes from the consumers and pay it to the government. These taxes are meant for the government, but when the dealers collect them and fail to remit them, they are treated as unregistered persons, and we issue notices accordingly."The department, she said, cannot individually identify every trader evading registration. Instead, the Services Analysis Wing at the department's head office used reliable sources such as UPI transaction data to flag potential defaulters."If a person has transacted over Rs 20 lakh for services or Rs 40 lakh for goods in a year through UPI, it indicates that they may be liable to register under GST," Pandit said, adding that notices were based only on preliminary data, not final officer said the department is not aware whether the turnover is entirely exempted, partially taxable, or fully taxable. That is why the notice includes a proposal to register and pay applicable taxes, interest, and penalties."If the turnover is completely from exempted goods or services like tuition fees, the registration is not required. If the reply is convincing, the notice will be dropped and proceedings will close with a nil demand," Pandit also addressed doubts prevailing among the trading circles."Some innocent traders are being carried away, hoping every notice will be withdrawn. Some are being misled. But if they want relief within legal provisions, I request them to come to the department. We will guide them as per the law," the Joint Commissioner said."Calling for a ' Bandh ' will not serve the purpose. They may represent their concerns peacefully," she concerns that UPI alone doesn't reveal the full turnover, Pandit said, "The UPI transaction is only one indicator. There could be other modes of payment like cash, card, or net banking. So, if they are not liable for registration, they must explain and support their claim through written replies or personal hearings."The department, the officer said, is open to engagement and has made extensive efforts to educate traders."Prior to the rollout of GST in July 2017, we conducted door-to-door awareness programmes, workshops, and released educational videos," she said."We also have helplines now across offices, and traders are coming forward to seek guidance.""Even if traders fail to respond to the first notice, we send three reminders and conduct a field visit if necessary. Final assessment happens only after considering their response and facts," she told PTI."We strictly adhere to the principles of natural justice and ensure every opportunity is given," she added."When you buy a plot, you go to the sub-registrar's office without being told. Likewise, traders should know applicable tax laws. Ignorance cannot be an excuse. The department is always there to guide," she trade activist Sajjanraj Mehta raised concerns over the fairness of recent GST notices He stated that while the Commercial Taxes Department is legally within its powers to use such data, the lack of prior warning, context, and education has confused."Many small traders were unaware that their UPI inflows, often a mix of business and personal transactions, would be treated as undeclared turnover," Mehta told PTI."The fairness issue lies not in enforcement itself, but in the suddenness and lack of clarity," he stressed that the department should differentiate between exempt and taxable goods before sending notices."Issuing notices without accounting for exempt goods like fruits, vegetables, or unbranded food items shows a lack of nuance," he said."A more tailored, data-informed approach could have avoided unnecessary panic".Mehta acknowledged a growing trend among vendors in Bengaluru and Mysuru to shift away from UPI."There's visible hesitation, especially in markets and grocery stores. Some vendors are reverting to cash or asking customers to avoid UPI. However, urban areas with tech-savvy customers still show strong digital payment usage," he to him, traders are currently seeking clear guidelines on how UPI transactions are treated under GST, a mechanism to contest mismatches or clarify exemptions without immediate penalties and awareness programmes in local languages.
