Does govt not look at verified financial transactions for GST?
Came across this GST scam that the gang was running by generating fake invoices and bills through bogus companies created using fake IDs. Why didn't the govt actually check if those transactions happened or not with the banks before granting input tax credit to the shell firms? Does it still not check with banks directly, or has it changed?
The suspect has been identified as Vikas Dabas, a resident of Mubarikpur in Delhi, said Shakti Avasthy, deputy commissioner of police (crime...
https://www.hindustantimes.com/cities/noida-news/noida-police-arrest-prime-suspect-in-10-000-crore-gst-fraud-101709052631973-amp.html
Know of an acquaintance whose family is involved in this 1% take-rate business. Very risky and clearly outside the law.
@Rorschach you may be right but the government is always extended on resources (manhours etc.) very hard to put a pin on things.
That is why technology enables leverage at scale. Now that this is out in the open, someone must be trying to solve for this,
