The Ahmedabad’s prestigious trade body, The Maskati Kapad Market Mahajan, has come forward to stop GST fraud as the organisation will provide GST numbers of fraudsters to the state GST department and after proper investigation, the department will take action against fraudsters.
The association will also provide details of blacklisted firms to the state tax department. Such fraudsters will not be able to generate new GST numbers based on their PAN and Aadhaar cards.
The 100+ year old association has more than 1500 members which are leading fabric manufacturers and traders.
There are complaints in the association related to cheating worth more than Rs. 140 crore and the Gujarat home department’s special investigation team (SIT) is active to stop GST frauds.
The Maskati Mahajan officebearers recently met senior officers of the state tax department seeking to work with the department to eradicate the menace of cheating.
This is the first time a trade body has come forward to work with the GST department to catch fraudsters.
It is being said by the official that after investigation, GST registration of fraudulent traders can be cancelled. If such traders are registered in other states, their information will be shared with tax authorities too.
It is pertinent to mention here that two years ago, a SIT for the textile sector was formed and it has so far recovered Rs. 23 crore through settlements in hundreds of fraud cases.
Gaurang Bhagat, President, Maskati Kapad Market Mahajan believes that SIT has helped textile traders in a big way. However, there are some fraudsters who are untraceable. There are some 1,256 cases with the SIT and 460 cases with the Mahajan arbitration committee, in which fraudsters are either not traceable or are not making payments.
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