The State Goods and Services Tax (GST) authorities said on Friday that they have begun investigations against 23 companies, based out of Ahmedabad, for alleged tax evasion. Authorities suspect that these companies have caused a loss to state exchequer by fraudulently claiming Input Tax Credit (ITC).
Authorities said that they have begun investigation and the extent of tax evasion will be known not before Saturday. Tax evaders form fraudulent companies using identities of various persons without their knowledge and ITC is transferred to their bank accounts, causing loss to the state exchequer.
Now GST authorities also have the power to arrest a person, something which businessmen fear, could lead to use of arbitrary power and harassment to the the businesses. A recent judgement by the Supreme Court, approving the power to arrest, has also given a boost to GST authorities.
