A vegetable seller of Rourkela has attracted towards GST fraud as a notice for Rs 110 crore tax evasion has been served to him. Kartik Kamila, who runs a small vegetable shop, was taken aback after getting the notice. He has been fraudulently represented as the owner of a market complex at Koelnagar in the steel city by the Lingaraj Trading company.
This apart, an amount of Rs 10 crore has allegedly been misappropriated as input tax credit through fake bank accounts. Kamila suspected that someone might have committed the offence using his electricity bills. Earlier, several students, housewives, owners of small eateries, labourers, and auto-rickshaw drivers in Rourkela were also victimised in similar ways by the scamsters.
Input Tax Credit (ITC) basically means reducing the taxes paid on inputs from taxes to be paid on output. When any supply of services or goods is supplied to a taxable person, the GST charged is known as Input Tax.
According to Section 16(1) of the CGST Act, every registered taxable person shall, subject to such conditions and restrictions as may be prescribed and within the time and manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.