GSTpanacea.com

In a major offensive against tax evasion, Punjab's Finance and Taxation Minister Advocate Harpal Singh Cheema announced the detection of bogus billing transactions worth Rs 1,549 crore and the blocking of fraudulent ITC claims worth Rs 108.79 crore in the ongoing financial year

🚨 A fraudulent GST demand of ₹2.83 crore was levied on Vakola resident; prompting a police case based on forged documents and procedural failures by tax authorities.

✅ Background of the Case
➡️ On November 2022, a severe incident involving GST fraud was reported:
🔹 21-year-old Sakshi Jeetendra Adsul discovered her father, Jeetendra Adsul, faced a staggering GST demand of ₹2.83 crore.
🔹 The fraud stemmed from the opening of a bank account with forged documents, leading to unauthorized transactions totaling ₹13.77 crore.

🟢 Legal Grounds
➡️ Legal Actions Taken: The police have registered a case against unknown individuals under several sections of the Indian Penal Code:
🔹 Section 406: Criminal breach of trust
🔹 Section 420: Cheating and dishonestly inducing delivery of property
🔹 Section 465: Forgery
🔹 Section 467: Forgery of valuable securities, wills, etc.
🔹 Section 468: Forgery for the purpose of cheating
🔹 Section 471: Using as genuine a forged document

✅ Procedural Lapses Highlighted
➡️ Despite notifying the authorities, the Income Tax and GST Departments continued to issue notices until 2025.
🔹 The complainant was left to navigate a maze of legal challenges without substantial assistance from the tax departments.

Enactment of the Finance Bill, 2025

The Finance Bill, 2025, was enacted on 29 March 2025. The amendments made by the Finance Act, 2025, in the CGST Act, 2017, except in section 20 of the said Act, shall become effective from a date to be notified subsequently. Amendments made in section 20 have become effective from 01.04.2025.