Ballia,

21 Feb (HS): The owner of an accused non-existent corporation has been charged

with creating a Rs 6.59 crore revenue loss by claiming input tax credit, police

said on Saturday. FIR was registered against Akhilesh Sharma, the owner of

Sharma Enterprises, which was discovered to be located in Sisotar village here,

after a complaint made by State Tax Officer Sikandar Verma at Sikandarpur

police station on Friday.

Police

claimed Sharma received a Goods and Services Tax Indication Number on January

18, 2025, ostensibly for purchase and sale transactions. However, Assistant

Commissioner of State Tax Rahul Kumar canceled the firm's registration on

February 28, 2025. In his conclusions, the assistant commissioner indicated

that the business declared inward supplies and claimed phony input tax credit

only through the exchange of paperwork, with no actual delivery of items from

non-existent and fraudulent enterprises.

Input

tax credit allows firms to claim credit for GST paid on business purchases,

reducing the GST owed on sales and eliminating 'tax on tax'. A examination of

documents accessible on the GST site indicated that the unlawfully obtained

input tax credit was used to discharge outward tax debt, resulting in a revenue

loss of Rs 6,59,38,960.41 in fiscal year 2024-25, authorities said.

During

a field examination, State Tax Officer Sunil Kumar Patel discovered that the

corporation did not operate at the reported location. At the property, Sharma's

father, Suresh Sharma, informed officials that no such company was functioning

from the address. He also spoke with his son over the phone, who claimed denied

obtaining any registration.

Officials

said that the non-existent corporation was utilized to illegally transfer input

tax credit advantages. Anil Kumar, Deputy Commissioner of State Tax, gave the

directives that led to the registration of the FIR on January 14. According to Sikandarpur

Station House Officer Mool Chandra Chaurasia, police have launched an inquiry

into the case.

Hindusthan Samachar / Abhishek Awasthi