Mumbai, India (Urban Transport News): Indian major infrastructure firm Larsen & Toubro Limited (L&T), which has been given the task to construct major sections of country's first bullet train project Mumbai-Ahmedabad High Speed Rail corridor, is facing big hurdles with the tax department. The Goods & Service Tax (GST) department has fined a whopping Rs 30 crores on L&T in the alleged 'fake GST invoice' case.
In January this year, the tax department has conducted a surprised visit to the premises of L&T and some other Mumbai-based companies and they were found availing Input Tax Credit (ITC) based on alleged fake invoices. According to the revenue department, some of these 'GST invoices' are related to political funding, but the department refused to give more details.
After launching a crackdown against fake invoicing frauds and GST evasion in November 2020, the GST department has arrested 329 persons and filed more than 3,200 cases against 9,600 fake GSTIN entities so far. The department has recovered more than Rs 1,000 crore from these fraudsters.
"Out of the 329 arrests so far, 113 were proprietors, 46 directors/managing directors, 17 partners, 5 CEOs/CFOs/CMDs, 10 chartered accountants, 4 accountants, and one each of company secretaries, broker, and GST practitioner. Arrested persons also include fake entities operators and the end beneficiaries who connive with these fraudsters running businesses of fake invoices," said sources from the GST department.
The nationwide drive against fake GST invoice frauds has yielded record GST collections for over three months and has fetched record collections of Rs 1.15 lakh crore in December 2020, and Rs 1.20 lakh crore in January 2021.
When approached L&T for comments on the issue but the company did not respond to an email questionnaire, said Business Today.
Headquartered in Mumbai, Larsen & Toubro Limited is a multinational technology, engineering, construction, manufacturing and financial services conglomerate.