Odisha Finance department: GST fraud thrives on greed of poor | Cuttack News – Times of India

Clipped from: https://timesofindia.indiatimes.com/city/cuttack/odisha-finance-department-gst-fraud-thrives-on-greed-of-poor/articleshow/82853586.cms

CUTTACK: The state finance department’s commercial taxes & GST wing has claimed before the Orissa high court that the racket involved in mass fraud in the Goods & Service Tax (GST) sector thrives on the greed and avarice of innocent poor people.
In an affidavit, deputy commissioner CT & GST (law) Swayamprava Sahu said the GST scam takes its root only after poor people hand over their personal documents to the agents of the mastermind. “Being of poor worldly dispositions, they often do so for getting employment, loan or for other financial gains. They may or may not know the end use of their actions. Be it as it may, the initial action of these innocent people are soiled with greed and avarice,” Sahu said.
The affidavit was filed in reply to a PIL seeking direction for investigation into the mass fraud going on in the GST sector and harassment of innocent and poor by way of issuing summons/notices to them in this connection. In the affidavit, Sahu further said, “Since the GST system is non-intrusive and citizen friendly, any third person, having the illegal possessions of the personal documents of others can obtain GST registration as well as open a bank account. Thereafter, they can raise pseudo tax invoices claiming sale and purchases without sale of goods. The transactions will generate input tax credit, which can be distributed online among other actual tax payers who will utilize it for their tax payment to the state.” Sahu added, “The petitioner, as in other cases like him, is the starting point of fraud and his interrogation is badly necessary to connect the kingpin. The petitioner is seeking to wriggle out of the legal position by filing a public interest litigation to avoid the notices issued under Section 73 and 74 of the OGST Act.”
The affidavit was filed when the PIL came up on Monday. The division bench of Justice B R Sarangi and Justice K R Mohapatra posted the matter to June 22 after the petitioner counsel Ashis Kumar Mishra sought time to file a rejoinder to the affidavit. Rajendra Pallai, 49, a Rourkela-based auto rickshaw driver who had received summons/notices for payment of tax or penalty under GST law had filed the PIL.

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