There are campaigns all over the country against fake input tax credit takers in the guise of fake companies. After Delhi, three people were arrested in Mumbai for Rs 2300 crore worth of GST fraud. Many of these counterfeit companies have connections from Kanpur.
Fake companies are constantly under attack following the instructions of the GST Council. In September, Sebi ABs were abused by 100 counterfeit companies in Kanpur. The supply of 12 firms, including Arman Trading Company, Marshall Multiventers, IKEA Infra, was found in Kanpur, which was discovered during the attack in Mumbai. GST fraud worth Rs 1100 crores has been defrauded through these institutions. If the attack was known to have been seized without ITC supplies.
The circular transaction was conducted by 14 companies registered at the Kanpur address. By them the counterfeit trade was shown. When you buy from someone else, someone is said to be a supplier. In this way, the paper business was multiplied many times and on this basis large loans were taken from the banks. This game is called circular business. Additional Commissioner of SGST, SIB KP Verma, said that there was a campaign against counterfeit companies across the country on the instructions of the council. SGST is constantly taking stern action against counterfeit companies and taking ITC by mistake. Wing has investigated the CGST action against counterfeit companies in Mumbai.
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