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Navayuga Engineering Company Limited in trouble for fake GST invoices
05-Aug-2019
Timesofindia
GST,Fake GST Invoices
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Navayuga Engineering Company Limited, which was asked to suspend works related to the Polavaram project by the Andhra Pradesh (AP) government, is facing Director-General of GST Intelligence probe for allegedly taking fake invoices. DGGI has alleged that Navayuga received invoices worth Rs 27 crore, including a GST component of Rs 4.8 crore, from three companies without getting any goods or availing any service Navayuga has so far paid Rs 5.67 crore to the GST authorities
The ongoing GST case has gained significance with the AP government alleging irregularities in the construction of the Polavaram multi-purpose project. The Jaganmohan Reddy government on Wednesday issued a pre-termination order to Navyugda regarding the Rs 3,000 crore Polavaram project work DGGI, in its report, has stated that the case against Navayuga pertains to fraudulently availing and utilisation of input tax credit (ITC) on invoices without receiving any material or services.
Navayuga, which has a registered address in Visakhapatnam, is engaged in not only construction of irrigation projects, but also into roads, bridges, tunnels, ports and power plants. “Investigation was initiated against Navayuga under search and inspection proceedings. Scrutiny of the documents recovered from Navayugda revealed that they have received invoices worth Rs 27 crore, including GST component of Rs 4.8 crore, issued by Adarsh Global Traders, Hero Wiretex Private Limited and Rollon projects without receipt of any goods or services,” the DGGI report said.
“Navayuga availed ITC on invoices without receipt of goods in contravention of the CGST Act. Availing ITC on such invoices was liable to be taxed along with applicable interest and penalty.
A statement of K Rama Kishore, senior manager (accounts and taxation), Navayuga, was recorded, wherein he accepted availing ITC fraudulently Navayugua has voluntarily paid Rs 5.67 crore, including Rs 4.86 crore towards GST and Rs 81 lakh towards interest, from electronic cash ledger, pending further investigation,” it added. When contacted, Navayugda spokesperson refused to comment. Pressed further for a reaction, the official said: “No comments”. DGGI has alleged that Navayuga received invoices worth Rs 27 crore, including a GST component of Rs 4.8 crore, from three companies without getting any goods or services.
Source:timesofindia
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