#GST-Fraud-Case

[townpostin]

GST Fraud Case: Jamshedpur Industrialist Jailed

Court orders custody for Gyan Chandra Jaiswal in ₹55.66 crore tax evasion scandal Prominent businessman arrested after multiple summons, accused of fraudulent transactions through various companies. JAMSHEDPUR – A local court has remanded industrialist Gyan Chandra Jaiswal to judicial custody in a significant GST fraud case. Jaiswal, also known as Bablu Jaiswal, faced arrest for his alleged…

[taxationplanning]

GST Amnesty Scheme 2024: GSTN Issues Advisory

About GST Amnesty Scheme 2024 For reducing tax disputes and to provide big relief to the taxpayers, GST Council in its 53rd meeting had recommended GST Amnesty Scheme 2024 for waiver of interest and penalties in the demand notices or orders issued under Section 73 of the CGST Act, 2017 (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the Financial years 2017-18,…

[finverto]

Highlights of the 53rd GST Council Meeting: Key Updates and Outcomes

Highlights of the 53rd GST Council Meeting: Key Updates and Outcomes. The 53rd GST Council meeting, held on June 22, 2024, in New Delhi, marked the first meeting after the 2024 Lok Sabha elections. Chaired by the newly appointed Union Finance Minister, Nirmala Sitharaman, the meeting addressed several critical issues to streamline GST compliance and enhance the tax structure. This blog provides a comprehensive overview of the meeting’s highlights, updates, outcomes, and the latest news. GST Registration.

Key Decisions and Updates from the 53rd GST Council Meeting

Ease of Compliance Burden for Taxpayers

1. Changes in GSTR-1 Filing:

Introduction of GSTR-1A: Taxpayers can now add or amend particulars in GSTR-1 of the current tax period/IFF for the 1st and 2nd month of the quarter before filing GSTR-3B.

Reporting B2C Supplies: The threshold for reporting Business-to-Consumer (B2C) interstate supplies invoice-wise in Table 5 of GSTR-1 has been reduced from ₹2.5 lakh to ₹1 lakh.

2. GSTR-4 Due Date Revised:

The due date for filing GSTR-4 by composition taxable persons has been extended from April 30 to June 30, starting from the fiscal year 2024-25.

3. TCS Rate Reduction:

The Tax Collected at Source (TCS) rate for Electronic Commerce Operators (ECOs) has been reduced from 1% to 0.5% (0.25% each under CGST and SGST/UTGST or 0.5% under IGST).

4. Compulsory Filing of GSTR-7:

GSTR-7 must be filed mandatorily even if no Tax Deducted at Source (TDS) is deducted. No late fee will be charged for nil filing. GST Filing.

5. GSTR-9/9A Filing Exemption:

Taxpayers with an aggregate annual turnover up to ₹2 crore will be exempt from filing the annual return in GSTR-9/9A for the fiscal year 2023-24.

Modifications to Sections and Rules

1. Modification to Section 16(4):

The time limit to avail Input Tax Credit (ITC) for invoices or debit notes in any GSTR-3B filed up to November 30, 2021, is deemed to be November 30, 2021. This applies retrospectively from July 1, 2017. Section 16(4) shall be relaxed for returns filed within 30 days of the order of revocation.

2. Amendment to CGST Rule 88B:

No interest will be charged on the amount available in the electronic cash ledger on the due date of filing GSTR-3B, debited while filing the return in cases of delayed filing.

3. New Section 128A:

Waives interest and penalties for demand notices issued under Section 73 of CGST for fiscal years 2017-18, 2018-19, and 2019-20 in cases not involving fraud, suppression, and misstatement. This applies if the taxpayer pays the full amount in the notice by March 31, 2025.

4. Changes in Sections 73 and 74:

A common time limit will be set for issuing demand notices and orders. The time limit for taxpayers to claim the benefit of reduced penalty, by paying the tax demanded along with interest, is increased from 30 to 60 days.

https://www.finvertoassociates.com/wp-content/uploads/2024/07/Designer-5.jpeg

Monetary Limits and Appeals

1. Monetary Limits for GST Appeals:

Recommended monetary limits for filing appeals: ₹20 lakh for GST Appellate Tribunal, ₹1 crore for High Court, and ₹2 crore for Supreme Court.

2. Amending Sections 107 and 112:

The maximum amount for pre-deposit for filing an appeal before appellate authorities is reduced from ₹25 crore to ₹20 crore under both CGST and SGST. For appeals before the GST Appellate Tribunal, the pre-deposit is reduced from 20% with a maximum amount of ₹50 crores to 10% with a maximum of ₹20 crores under both CGST and SGST.

Additional Key Decisions

1. Sunset Clause for Anti-Profiteering Cases:

A sunset clause will be added for pending anti-profiteering cases. The hearing panel will shift from CCI to the principal bench of GSTAT. The sunset date for receiving new applications regarding anti-profiteering is set for April 1, 2025.

2. Time Limit for GSTAT Appeals:

Modifying Section 112 to provide a 3-month time frame for filing appeals before the GST Appellate Tribunal. The timeline will commence from a date yet to be notified, likely by August 5, 2024.

3. New Section 11A:

Allows regularization of non-levy or short levy of GST due to common trade practices.

4. IGST Refunds and Adjustments:

Mechanism introduced for claiming refunds of additional IGST paid due to upward price revisions after exports. No IGST refund will be allowed where export duty is payable.

5. Biometric-based Aadhaar Authentication:

Implementation of biometric-based Aadhaar authentication for GST registration will be rolled out nationwide in a phased manner.

6. DRC-03 Circular:

A circular will prescribe a mechanism for adjusting any demand amount paid through DRC-03 against the amount payable as a pre-deposit for filing a GST appeal.

7. Amendment to Section 122(1B):

Clarification that the penal provision is applicable only for those e-commerce operators required to collect TCS under Section 52 and not for other e-commerce operators.

The 53rd GST Council meeting has brought significant changes aimed at simplifying compliance, reducing the tax burden, and enhancing the efficiency of the GST system. These updates reflect the government’s ongoing efforts to create a more robust and taxpayer-friendly GST framework. Keep an eye on official announcements for further details and implementation guidelines.

Stay tuned for the latest updates and insights on GST and other financial regulations.

[news365timesindia]

[ad_1] GG News Bureau Ahmedabad, 17th Oct. The Enforcement Directorate (ED) on Thursday carried out searches across multiple cities in Gujarat in connection with a money laundering case tied to a GST fraud. The raids were conducted at about 23 premises in Rajkot, Junagadh, Ahmedabad, Bhavnagar, and Veraval, following a case filed under the Prevention of Money Laundering Act (PMLA), according to official sources. The case stems from an FIR lodged by the Ahmedabad Police Crime Branch, which initiated an investigation based on a complaint from the Central GST. The complaint alleged a scam involving shell companies set up to defraud the government through bogus input tax credits and fraudulent transactions. Among the premises covered by the ED’s search operations were those linked to journalist Mahesh Langa of The Hindu, who, along with seven others, was arrested by the state police recently. Langa was detained after the Central GST detected suspicious activities involving bogus firms allegedly set up in the names of his wife and father using forged documents. The initial investigation by the Crime Branch and Gujarat’s Economic Offences Wing led to raids at 14 locations across the state, including Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar. Authorities uncovered over 200 fraudulent firms operating in an organized manner across the country, engaged in claiming bogus input tax credits through the use of forged documents and identities, causing significant losses to the government exchequer. The post ED Conducts Raids Across Gujarat in Money Laundering Case Linked to GST Fraud appeared first on Global Governance News- Asia's First Bilingual News portal for Global News and Updates. [ad_2] Source link

[news365times]

[ad_1] GG News Bureau Ahmedabad, 17th Oct. The Enforcement Directorate (ED) on Thursday carried out searches across multiple cities in Gujarat in connection with a money laundering case tied to a GST fraud. The raids were conducted at about 23 premises in Rajkot, Junagadh, Ahmedabad, Bhavnagar, and Veraval, following a case filed under the Prevention of Money Laundering Act (PMLA), according to official sources. The case stems from an FIR lodged by the Ahmedabad Police Crime Branch, which initiated an investigation based on a complaint from the Central GST. The complaint alleged a scam involving shell companies set up to defraud the government through bogus input tax credits and fraudulent transactions. Among the premises covered by the ED’s search operations were those linked to journalist Mahesh Langa of The Hindu, who, along with seven others, was arrested by the state police recently. Langa was detained after the Central GST detected suspicious activities involving bogus firms allegedly set up in the names of his wife and father using forged documents. The initial investigation by the Crime Branch and Gujarat’s Economic Offences Wing led to raids at 14 locations across the state, including Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar. Authorities uncovered over 200 fraudulent firms operating in an organized manner across the country, engaged in claiming bogus input tax credits through the use of forged documents and identities, causing significant losses to the government exchequer. The post ED Conducts Raids Across Gujarat in Money Laundering Case Linked to GST Fraud appeared first on Global Governance News- Asia's First Bilingual News portal for Global News and Updates. [ad_2] Source link

[jasminewilson143]

Senior Journalist Mahesh Langa Arrested in Alleged GST Fraud Case in Gujarat

Senior Journalist Mahesh Langa Arrested in Alleged GST Fraud Case in Gujarat Ahmedabad, Gujarat: In a dramatic development that has stirred both the media and political landscapes, Mahesh Langa, a senior assistant editor at The Hindu, was arrested on Tuesday morning by the Detection of Crime Branch (DCB) in Gujarat. Langa, based in Gujarat, was taken into custody along with three others as part…

[6nikhilum6]

Man gets job offer on WhatsApp, unknowingly linked to ₹250 crore GST fraud

An unemployed man from Muzaffarnagar duped in massive Rs 250 crore GST fraud In a startling case of job-related fraud, an unemployed man from Muzaffarnagar has become an unwitting participant in a significant GST e-way billing scam amounting to around Rs 250 crore. The fraudulent activity came to light when GST officials visited Ashwani Kumar’s home to inform him of the illegal transactions tied…

[noticegstka]

Demand Notices Under Section 73 of the CGST Act

Introduction

The Goods and Services Tax (GST) has streamlined the taxation process in India, but compliance remains crucial. One important aspect of GST compliance is understanding the provisions related to demand notices, particularly under Section 73 of the Central Goods and Services Tax (CGST) Act. This blog post will explore what a demand notice under Section 73 entails, the circumstances under which it is issued, and the steps businesses should take upon receiving one.

What is Section 73 of the CGST Act?

Section 73 of the CGST Act deals with the determination of tax not paid, short paid, erroneously refunded, or input tax credit (ITC) wrongly availed or utilized for reasons other than fraud, willful misstatement, or suppression of facts. Essentially, it covers cases where there is no intention to evade tax but errors have occurred.

When is a Demand Notice Issued?

A demand notice under Section 73 is issued by the proper officer when it appears that:

Tax has not been paid or has been short paid.

A refund has been erroneously granted.

ITC has been wrongly availed or utilized.

The notice requires the taxpayer to show cause as to why they should not pay the amount specified in the notice along with applicable interest and penalties.

Key Provisions of Section 73

Issuance of Notice: The proper officer must issue the notice at least three months before the time limit for issuing the order, which is three years from the due date of filing the annual return or the date of erroneous refund.

Response Time: The taxpayer is given an opportunity to respond to the notice and present their case.

Interest and Penalty: The notice will include details of the interest payable under Section 50 and any penalties leviable under the Act.

Summary in Form GST DRC-01: Along with the notice, a summary of the amount payable is provided in Form GST DRC-01.

Steps to Take Upon Receiving a Demand Notice

Review the Notice: Carefully review the notice to understand the discrepancies identified by the tax authorities.

Gather Documentation: Collect all relevant documents, such as invoices, returns, and payment receipts, to support your case.

Respond Promptly: Prepare a detailed response addressing each point raised in the notice. Ensure that your response is submitted within the stipulated time frame.

Seek Professional Help: If needed, consult a tax professional to help you navigate the complexities of the notice and prepare an appropriate response.

Conclusion

Receiving a demand notice under Section 73 of the CGST Act can be daunting, but understanding the provisions and knowing the steps to take can help businesses manage the situation effectively. By staying compliant and addressing any discrepancies promptly, businesses can avoid further complications and ensure smooth operations.

If you have any questions or need further assistance with GST compliance, feel free to reach out!

[mediagraph]

Rogue Tax Officer, 3 Lawyers, 500 Firms - Big GST Heist Uncovered In Delhi

A rogue tax officer, a trio of lawyers and a few other people masterminded a fraud, swindling ₹ 54 crore from the Goods and Service Tax (GST) Department in the national capital. It was exposed by the Anti-Corruption Bureau of the Delhi Government.

A GST officer, three lawyers, two transporters and the owner of a "company" were part of a plot involving 500 fake companies and fake invoices worth ₹ 718 crore to claim GST refunds worth ₹ 54 crore. The 500 companies only existed on paper and were purportedly involved in the import/export of medical goods to claim GST refunds.

Babita Sharma, the GST Officer (GSTO), hatched a plan with 96 fake firms and approved over 400 refunds worth ₹ 35.51 crore between 2021 and 2022. In the first year, only refunds worth ₹ 7 lakh were approved but later the remaining were approved.

Interestingly, the refunds were approved by the GSTO after filing the applications and approval was given within three days. In 2021, Ms Sharma was transferred to Ward 22 of the GST office and surprisingly, within a few days, over 50 firms applied for migration from Ward 6 to Ward 22, and was okayed within a short period. The migration raised alarm bells and the GST Vigilance Department sent teams to the offices of these firms. It led to the unearthing of the GST fraud, which had roots in its own office.

A particular ward has jurisdiction over a specific area.

The fake firms generated invoices worth ₹ 718 crore, i.e. fake purchases were made and business was only on paper, the probe, which was later transferred to the ACB, found. The GSTO issued refunds without verification of invoices and Input Tax Credit (ITC).

Over 40 firms were supplying goods in the first phase but no records were available in the second phase, the probe found. In the case of 15 firms, there was neither an Aadhar Card verification nor physical verification of the firm at the time of GST registration, which as per the rules is mandatory.

Of the 53 firms that migrated to Ward 22 after Ms Babita's transfer, 48 were given a GST refund of ₹ 12.32 crore. The Non-Objection Certificates or NOCs from property owners of these firms for offices were prepared between July 26, 202 and July 27. The GSTO was transferred to Ward 22 on July 26, 2021.

The investigation revealed that the GST refunds were issued in the bank accounts of three lawyers - Rajat, Mukesh and Narendra Saini and their family members, through different bank accounts. The ACB found 1,000 bank accounts directly related to the fake firms, their family members and the employees.

The trio ran 23 firms from an email ID and mobile numbers. Five firms were registered under the same PAN number and email ID to generate different GST registration numbers.

The 23 firms handled by the lawyers generated fake invoices worth ₹ 173 crore. Out of these 23 fake companies, seven were involved in the supply of medical goods and had shown business of ₹ 30 crore in their invoices.

One of the accused arrested is a fake firm owner, Manoj Goyal and two transporters, Surjeet Singh and Lalit Kumar. The Anti-Corruption Bureau said forged e-way bills and receipts of carrying goods were generated to get GST refunds. The transporters received money for providing such documents without giving any service.

[whattheabcxyz]

2024-04-10

Singapore

More than $7m worth of vaping components/vapes seized in 1st quarter of this year

Crane operator arrested after crane topples on van, crushing it

2 lawyers suspended 3 years each for misleading court & wasting judges' time

Man charged over alleged links to GST fraud involving bogus sales of $252m

New social impact hub Foundry to spark collaboration between charities

Nature

Singapore: Springleaf & Tengah among potential hotspots where birds crash into buildings

Shopping

Shopee tops latest e-commerce safety ratings, with Facebook & Carousell at bottom

Pets

NParks & ICA set trap to nab bird smugglers in 1 of Singapore’s largest cases - 138 of 337 birds died 😢

Food

So is diet soda good or bad? - I'm not drinking it regardless!

Health

NUS study says COVID-19 vaccine protection wanes faster among elderly, hence booster shots needed - ffs give it a rest already!!!

Art

^ $16K (current bid at time of writing) for this flag any of us could've painted ourselves

Internet

Malaysia orders Meta & TikTok to counter harmful content amid religious controversies

Politice

Singapore & Germany to work towards strategic partnership

[newslime]

Unveiling the Shocking Reality: Over Rs 2 Lakh Crore GST Evasion in FY24

In a surprising turn of events, authorities have uncovered GST evasion amounting to over Rs 2 lakh crore during the fiscal year 2023-24, nearly equivalent to 10% of the total GST collections. Despite a commendable 11.6% increase in gross GST collections from the previous financial year, this staggering revelation underscores the persistent challenges faced in combating tax evasion.

The Directorate General of GST Intelligence (DGGI), the enforcement arm under the Ministry of Finance’s Department of Revenue, has identified various sectors where the majority of alleged tax evasion occurred. Among these, sectors such as online gaming and casinos, co-insurance/re-insurance, and secondment have been particularly implicated, with significant sums involved.

The FY24 data reveals a substantial surge in detected cases of duty evasion, totaling around Rs 2,01,931 crore across 6,074 cases—a staggering 99% increase from the previous financial year. Moreover, voluntary payments towards the evasion have also risen, amounting to Rs 26,598 crore, representing approximately 1.3% of total GST collections in FY24.

Wrongful availment of input tax credit (ITC) or fake ITC claims has emerged as a major concern for GST authorities. Special drives have been conducted to counter this menace, resulting in the detection of numerous cases involving fraudulent ITC claims. Notably, the focus has been on dismantling fake input tax credit syndicates and apprehending masterminds behind these schemes, leading to a significant number of arrests.

In addition to domestic tax evasion, investigations have been initiated against offshore online gaming entities that fail to comply with GST laws. The crackdown on tax evasion has been relentless, with authorities issuing a slew of notices to entities across various sectors, including banking, insurance, online gaming, and more.

To strengthen enforcement efforts, GST authorities are leveraging advanced technologies such as Big Data Analytics and Artificial Intelligence to detect evasion. The DGGI has bolstered its cyber forensics infrastructure and established digital forensic laboratories across strategic locations in India.

In a bid to streamline investigations and ensure effective enforcement, the Central Board of Indirect Taxes and Customs (CBIC) has issued guidelines outlining standard operating procedures for GST officers. These guidelines aim to expedite investigations, particularly in cases involving major industrial houses or multinational corporations, while maintaining a strict deadline for concluding inquiries.

The revelation of such significant GST evasion underscores the critical importance of robust enforcement measures and technological advancements in combating tax fraud. As authorities continue to intensify their efforts, it remains imperative for businesses to adhere to GST regulations and uphold integrity in tax compliance.

[gkkedia001]

Unlocking the Significance of Chartered Accountant in India

In the realm of financial prowess, a Chartered Accountant in India emerges as a solution-oriented luminary, someone who remains vigilant while others rest. This title denotes a qualified professional accountant proficient in a spectrum of accountancy activities. It's worth noting that the status of a Chartered Accountant in India aligns with that of a certified public accountant (CPA) in the United States.

Diverse Domains of Chartered Accountant in India

Chartered Accountant in India navigate through four key domains, showcasing their expertise in:

Taxation: Mastering the intricacies of tax regulations.

Financial Accounting: Handling the fundamental aspects of financial records.

Financial Reporting: Crafting comprehensive financial reports.

Applied Finance Management Accounting: Applying financial acumen for strategic management.

Versatility in Professional Settings

These financial maestros operate in various settings, including:

Corporate Organizations

Entrepreneurial Ventures

Industrial and Commercial Enterprises

Non-Profit Organizations

Public Sectors

Their strategic approach aims at maximizing profitability on behalf of their clients or employers.

Duties and Obligations

As a Chartered Accountant, your responsibilities encompass a diverse range of financial activities, including:

Managing financial systems and budgets.

Conducting financial audits for organizational transparency.

Offering insightful financial advice to clients.

Regularly communicating with clients, providing financial information, and advising on various matters.

Analyzing and managing risks within the company's systems.

Advising clients on tax planning, considering current legislation.

Maintaining accurate accounting records and preparing management information.

Counselling clients on business improvements or insolvency matters.

Employing forensic accounting to detect and prevent fraud.

Coordinating with internal and external auditors.

Producing financial management reports, including planning and forecasting.

Providing expert advice on tax and treasury issues.

Negotiating terms with suppliers.

Working Dynamics

Chartered Accountant in India  typically work 8 to 9 hours a day, with variations based on roles and organizations. During peak months, such as March, July, August, September, and December, overtime is common to meet deadlines, especially in larger firms. Trainees usually receive compensatory time off for any overtime worked.

Essential Skills

A successful Chartered Accountant in India possesses a rich set of skills, including:

Motivation and initiative.

Leadership qualities and effective teamwork skills.

Excellent communication and interpersonal skills.

General business interest and awareness.

Organizational and time management proficiency.

Integrity and trustworthiness.

Adherence to confidentiality.

IT proficiency.

Driving Demand for Chartered Accountant in India

Several factors contribute to the burgeoning demand for Chartered Accountant in India :

GST Implementation: The advent of the Goods and Service Tax (GST) has spurred the demand for Chartered Accountants well-versed in the new tax regime.

International Taxation: Increasing cross-border transactions elevate the need for Chartered Accountant in India specializing in international taxation.

Regulatory Norms: Stringent regulations for companies escalate the demand for competent auditors to scrutinize and report financial records.

Wealth Management: The confluence of financial and investment advice, accounting, and tax services heightens the demand for Chartered Accountant in India.

Mergers and Acquisitions: Chartered Accountants are pivotal in handling client-specific mergers and acquisitions cases.

Rising Income Taxpayers: The surge in income taxpayers in India amplifies the demand for Chartered Accountants.

Business Startup Plans: Chartered Accountant in India play a crucial role in formulating plans for business startups.

Partnering with GKKedia & Co.

Explore the expertise of GKKedia & Co., a distinguished Chartered Accountant in India  firm. With nine full-time CA Partners and six CA Assistants, guided by CA Gopal Kumar Kedia, a former Accountant Member of the Income Tax Appellate Tribunal, we offer comprehensive services. Based in Delhi and Punjab, our firm is your go-to resource for business and financial guidance. Enquire now for unparalleled assistance tailored to your needs.

[thxnews]

Crypto Tax Evasion: UK Leads Worldwide

  Leading the Charge Against Offshore Tax Evasion

In an unprecedented move, the United Kingdom, on November 10, 2023, has forged a historic joint statement with 48 nations to confront criminals exploiting crypto-assets for tax evasion, potentially recouping billions in lost revenue. This groundbreaking initiative marks the UK's pioneering role in a global commitment to combat offshore crypto tax evasion.   Minister Atkins Commends International Cooperation Victoria Atkins, the Financial Secretary to the Treasury, commended the international collaboration that aims to close gaps in the global tax system. Speaking about the monumental agreement, she expressed optimism about recouping hundreds of millions of pounds in lost revenue through this joint effort.  

Building on the G20/OECD Global Tax Deal

This landmark agreement follows the UK's leadership in the historic G20/OECD global tax deal established in 2021. The previous deal focused on curbing corporate tax avoidance, ensuring that taxes are paid in the appropriate jurisdictions.   Introducing the Crypto-Asset Reporting Framework (CARF) At the forefront of this initiative is the Crypto-Asset Reporting Framework (CARF), the OECD's latest flagship tax transparency standard. Spearheaded by the UK, CARF mandates that crypto platforms share taxpayer information with tax authorities, a practice not currently in place. This ensures that tax authorities can exchange vital information to enforce tax compliance. The CARF is slated to take effect by 2027, signaling a significant step towards combating offshore tax evasion.  

Financial Secretary Atkins Affirms UK Leadership

Financial Secretary Victoria Atkins expressed pride in the UK's leadership in addressing global tax evasion. She emphasized securing essential revenue for public services and sent a strong message that criminals cannot exploit crypto to evade their fair share of taxes.   CARF and the Global Crypto Market The CARF builds upon the OECD's Common Reporting Standard (CRS), a successful system established in 2014 for tax authorities to share information on traditional financial assets. With nearly £100 billion in additional tax revenue recovered, the CRS has been instrumental in combating offshore tax evasion. Experts consider the new framework essential for countering escalating tax avoidance in the rapidly growing global crypto market, where estimates indicate non-compliance on crypto-asset holdings ranging from 55% to 95%.   The Global Challenge of Corporate Crypto Tax Evasion Cryptocurrency tax evasion is a mounting issue worldwide, with corporations increasingly using crypto assets to conceal income and avoid taxes. The exact extent remains unknown, but estimates suggest it could be in the tens of billions of dollars annually. Some of the most common methods of corporate cryptocurrency tax evasion include using offshore exchanges and wallets to hide crypto assets from tax authorities, employing crypto assets for transactions with entities not subject to tax reporting requirements, and engaging in wash trading to create artificial capital losses.   Challenges in Developing Countries Cryptocurrency tax evasion poses particular challenges in developing countries, where weak tax enforcement and limited awareness amplify associated risks. Governments globally are taking steps to address corporate cryptocurrency tax evasion, but tracking and enforcing compliance in the crypto space remains challenging.   Recent Corporate Crypto Tax Evasion Cases Here are some specific examples of recent corporate cryptocurrency tax evasion cases that underline the growing scale and sophistication of the issue: - In 2023, Indian tax authorities seized nearly $0.5 billion in evaded GST from local cryptocurrency exchanges. - In 2022, the UK's HMRC seized crypto assets and NFTs intended for use in a VAT fraud scheme. - In 2021, the US Department of Justice charged a group with operating a cryptocurrency exchange used for money laundering and tax evasion. These cases highlight the urgency of the global effort led by the UK to combat corporate cryptocurrency tax evasion and secure essential revenue for public services. The Crypto-Asset Reporting Framework's implementation is poised to take a pivotal step in curbing this escalating issue by fostering international collaboration and transparency.   Sources: THX News & HM Treasury. Read the full article

[vatai]

VAT Ai: What Is The Government Doing To Prevent Vat | Gst Invoice Fraud?

Governments around the world implement various measures and strategies to prevent Value Added Tax (VAT) or Goods and Services Tax (GST) invoice fraud. Invoice fraud can take different forms, such as fake invoices, false reporting of transactions, and other schemes designed to manipulate the tax system. While the specifics of anti-fraud measures can vary from one country to another, here are some common strategies and actions taken by governments:

Electronic Invoicing Systems:

Many countries are moving towards electronic invoicing systems to enhance transparency and reduce the risk of fraud. Electronic systems can provide real-time reporting and validation, making it harder for fraudsters to manipulate invoices.

Digital Authentication and Signatures:

Digital signatures and authentication mechanisms are employed to ensure the integrity of electronic invoices. This helps in verifying the authenticity of the documents and reducing the risk of fraudulent activities.

Advanced Technology and Data Analytics:

Governments leverage advanced technologies, including data analytics and artificial intelligence, to analyze large sets of data and detect patterns indicative of fraudulent activities. This can help identify anomalies and unusual transaction patterns.

Education and Awareness Programs:

Governments often conduct education and awareness programs to inform businesses and taxpayers about the risks of invoice fraud and the consequences of engaging in such activities. This can help in fostering a culture of compliance.

Strict Penalties and Enforcement:

Governments may impose strict penalties for VAT or GST fraud, including fines and legal consequences. Robust enforcement measures are essential to deter fraudulent activities and ensure compliance.

Collaboration with Businesses:

Governments collaborate with businesses and industry associations to understand emerging risks and challenges related to VAT or GST fraud. This collaboration can lead to the development of effective preventive measures.

Regular Audits and Inspections:

Tax authorities conduct regular audits and inspections of businesses to verify the accuracy of reported transactions and compliance with tax regulations. This helps identify discrepancies and potential fraud.

Cross-border Cooperation:

In cases where fraud involves cross-border transactions, governments may cooperate with international organizations and other countries to share information and address fraudulent activities that span multiple jurisdictions.

It's important to note that the effectiveness of these measures depends on a combination of technological advancements, legal frameworks, and the active participation of businesses and individuals in maintaining compliance. Additionally, tax laws and anti-fraud strategies may evolve, so businesses should stay informed about the latest regulations and best practices in their respective jurisdictions.

*The content of this article is provided by VAT Ai（https://www.vatai.com/）Based on online data, for the purpose of transmitting more information.

[cybercrime-blogs]

Chinese-Linked Scam Busted: Mastermind of Rs 21 Crore Online Job Scam Arrested By Uttarakhand STF

Dehradun's Special Task Force (STF) of the Uttarakhand Police has successfully apprehended the alleged mastermind behind a massive ₹21 crore fraud scheme that targeted unsuspecting individuals with the lure of a work-from-home opportunity. The accused, identified as Rushabh Sharma from Haryana, was captured following an extensive and meticulous investigation. It is believed that Sharma was the architect of this elaborate fraudulent operation, which had connections to Chinese interests.

Also Read: Cybercrime in Nagpur - Cyber Blackmailer Couple Arrested in Pune for Extorting Money

The case first came to light when a complaint was filed at the Cyber Crime Police Station in Dehradun. The victim, in search of an online job, received an enticing WhatsApp message from an unfamiliar number. This message promised a work-from-home opportunity associated with the renowned Marriott Bonvoy Hotel. The victim was then contacted through the Telegram app by an individual named Sonia, who claimed to represent the esteemed hotel group.

Sonia baited the victim with a scheme that initially involved earning commissions by booking hotels online. To initiate the victim's involvement, a website bearing the URL "https://www.marriottwork.com" was employed for registration, and a Telegram group was established using the link "https://t.me/+CSYSadhAdYk2NDII." Subsequently, the victim was assigned various financial transactions, ultimately leading to a significant loss of ₹19,94,853.

Legal Action and Thorough Investigation

In response to this fraudulent activity, a case was swiftly registered under Section 420/120B of the Indian Penal Code and the Information Technology Act at the Cyber Crime Police Station in Dehradun. An extensive technical investigation was initiated, which eventually led the authorities to the suspect's location in Haryana. A team was promptly dispatched to the neighboring state to further probe the matter, and after rigorous efforts, they succeeded in apprehending Rushabh Sharma, a 27-year-old resident of Gurgaon, Haryana. Additionally, Sharma's Realme mobile phone, alleged to have been used in the commission of the crimes, was seized by the police.

Also Read: Kashmiri Brother-in-Law could not show Kamal, and pressure on Nagpur police failed

Uncovering an Expansive Network

Throughout the investigation, the authorities unveiled a convoluted network of fraudulent bank accounts linked to the accused. These accounts were tied to over 85 complaints registered on the national portal, amounting to a staggering ₹21 crore. They were scattered across various locations, including Gujarat, Delhi NCR, and Punjab. Notably, the accused had also set up dummy bank accounts targeted at Chinese customers.

The perpetrators employed various tactics, including generating fake GST and import-export registration numbers, before establishing these bank accounts. These accounts were predominantly "CURRENT Accounts" created using PAN cards, with Aadhaar cards used for SMS alerts. Subsequently, they provided net banking credentials to foreign customers, enabling them to make cryptocurrency purchases and effectively erase any traces of the money trail. To evade scrutiny, accounts were established under the guise of agricultural firms and societies.

Also Read: Pune Couple's Organized Cyber Blackmailing Scandal Uncovered

This significant arrest by the Uttarakhand Police's Special Task Force represents a substantial victory in the battle against online fraud and cybercrime. It serves as a stark reminder for individuals to exercise caution when encountering seemingly lucrative work-from-home opportunities, particularly those that appear too good to be true.

A recent investigation has brought to light the extensive criminal activities of Rushabh Sharma, a notorious figure with a criminal record spanning multiple states and union territories in India. Shockingly, Sharma has faced a staggering 37 charges registered across 855 cases in various regions, including Telangana, Delhi, Uttar Pradesh, Chhattisgarh, Uttarakhand, Maharashtra, Haryana, and Karnataka, among others.

To further complicate matters, the accused had meticulously established a network of 855 criminal Telegram links that spanned across several states, with a notably high concentration in Uttar Pradesh, Rajasthan, Maharashtra, Delhi, Telangana, and Bihar.

Also Read: Cyber blackmailing case: Shatrughan's bail plea rejected

The evidence and information gathered during this investigation will be promptly shared with the relevant states and union territories, enabling them to take appropriate actions as necessary.

The individual at the center of this criminal web is Rushabh Sharma, the son of Rajesh Sharma, and a resident of M.No. 735, Sector 9, Gurgaon, Haryana. At 27 years of age, his arrest represents a significant setback for the orchestrators of this elaborate fraud scheme. This case serves as a stark reminder of the vital role that vigilance and reporting of suspicious activities play in preventing further individuals from becoming victims of such scams.

Source: https://www.the420.in/haryana-resident-kingpin-work-from-home-fraud-uttarakhand-stf/ 

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GST Number Verification API Your Secret Weapon for Financial Success

In today's rapidly evolving financial landscape, businesses must stay ahead of the game to achieve success. One powerful tool that often goes unnoticed, but can significantly impact your financial well-being, is the GST Number Verification API. In this comprehensive guide, we will explore how this often-overlooked resource can be your secret weapon for financial success. 

Understanding GST Number Verification

Before diving into the benefits of using a GST Number Verification API, it's essential to grasp the concept of GST and why verifying GST numbers is crucial. 

What is GST? 

GST, or Goods and Services Tax, is an indirect tax levied on the supply of goods and services in India. It has revolutionized the tax structure, simplifying the process and making it more transparent. GST is designed to benefit both businesses and consumers by streamlining tax compliance. 

Why Verify GST Numbers? 

Verifying GST numbers is essential for businesses to ensure that their suppliers and clients are genuine and registered under GST. This verification process helps prevent fraud and enables seamless business transactions within the GST framework. 

The Role of a GST Number Verification API

Now that we understand the importance of GST verification, let's delve into the role of a GST Number Verification API in simplifying this process. 

1. Instant Verification 

One of the most significant advantages of using a GST Number Verification API is the speed at which it operates. It can instantly verify the authenticity of a GST number, saving businesses valuable time and resources. 

2. Accuracy and Reliability 

The API relies on up-to-date government databases to ensure the accuracy and reliability of the information it provides. This minimizes the chances of fraudulent transactions and errors in GST compliance. 

3. Seamless Integration 

A well-designed GST Number Verification API can seamlessly integrate with your existing financial and accounting systems. This means you can incorporate GST verification into your workflow without disrupting your operations. 

4. Cost-Efficiency 

By automating the GST verification process, businesses can significantly reduce manual efforts and associated costs. This results in cost savings and operational efficiency, contributing to financial success. 

5. Compliance Assurance 

Using a GST Number Verification API helps you stay compliant with the ever-evolving GST regulations. Non-compliance can lead to penalties and legal issues, so this feature is crucial for financial stability. 

Industries Benefiting from GST Number Verification

The advantages of utilizing a GST Number Verification API are not limited to a specific industry. Businesses across various sectors can harness its potential to achieve financial success. Some industries that can benefit include: 

1. E-Commerce 

E-commerce platforms can verify the GST numbers of their sellers, ensuring that they comply with GST regulations. This fosters trust and transparency, making it easier for consumers to make informed purchases. 

2. Logistics and Transportation 

Companies in the logistics and transportation sector can use the API to verify the GST numbers of their clients and partners. This reduces the risk of working with unregistered businesses and streamlines billing and payments. 

3. Manufacturing 

Manufacturers can validate the GST numbers of their suppliers, ensuring a smooth supply chain and avoiding disruptions due to non-compliance. 

4. Financial Services 

Banks and financial institutions can integrate GST verification into their onboarding processes, ensuring that their customers are genuine entities. 

5. Healthcare 

Hospitals and healthcare providers can use the API to verify the GST numbers of vendors, contributing to transparent financial transactions and a well-organized supply chain. 

Case Studies: Real-World Impact

Let's take a look at some real-world case studies to understand the tangible benefits of using a GST Number Verification API. 

Case Study 1: XYZ E-Commerce 

XYZ E-Commerce, a rapidly growing online marketplace, integrated a GST Number Verification API into its seller onboarding process. As a result, they experienced a 30% reduction in fraudulent sellers and a 20% increase in customer trust. This led to higher sales and an improved bottom line. 

Case Study 2: ABC Logistics 

ABC Logistics, a major player in the transportation industry, adopted a GST Number Verification API to verify the GST numbers of its clients. This move resulted in a 15% reduction in payment disputes and a 25% increase in billing accuracy. It also significantly improved cash flow and overall financial stability. 

Conclusion

In the competitive world of business, staying financially sound is paramount. Utilizing a GST Number Verification API can be your secret weapon for financial success. With its instant verification, accuracy, seamless integration, cost-efficiency, and compliance assurance, it benefits businesses across a wide range of industries. Real-world case studies demonstrate the substantial positive impact it can have on your bottom line. So, don't underestimate the power of this often-overlooked tool. Incorporate a GST Number Verification API into your financial processes and watch your financial success soar. 

In summary, as you navigate the intricate web of business transactions, remember that the GST Number Verification API is your ally in ensuring transparency, reliability, and, ultimately, financial prosperity.