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  • Category: Miscellaneous

    When a big businessman is jailed for not paying GST

    Income Tax Department and the Directorate General of GST Intelligence (DGGI) have raided, on 24th December 2021, the premises of Kanpur-based perfume trader Piyush Jain and now he has been arrested. The team has recovered Rs 257 crore in cash and also gold and silver. He is being charged for making fake transport invoices for his business to save on GST.
    It is really very surprising that just to save GST he had taken such a big risk of going to Jail and losing his property as Govt will seal it to realise the pending taxes along with penalties. If such big businessmen do like that for such a long time without being caught then does not it show the inefficiency of our governance or existence of corruption in high places so that he was able to manage without being caught till such an extreme climax. What do you think regarding such cases?
  • #748600
    There are many instances where people are doing under-invoicing and trying to get money in cash. I know some instances where the same waybill was used 3 or 4 times on the same day to transport the material from their manufacturing site to the sales godown. Every 3rd piece produced was not shown in the account. These incidents were happening when there was no GST also.
    This is the biggest problem in our country and everywhere there is the involvement of corruption. I know in many companies the actual production figures are different from the figures they will declare to sales tax officials.
    Unless otherwise, the officials at the executive level become corruption free, it is very difficult to control such things. These officials are behaving like gloves in the hands of the company people. Still, we have to go a long way to come out of the corruption raj. But we are moving in a positive direction. The arrest of this industrialist is an indication of that.

    always confident

  • #748603
    Yes I have also seen the news video which baffled me a lot. Perfume business is more lucrative and with just extracts of flowers added with some chemicals they make huge money. Having earned so much money through perfume the businessman should have been sincere enough to reveal the earnings and paid GST. By concealing his income, now he has been arrested and sent to jail. Had he paid pittance amount as the tax, he could have saved money for him and family and now everything has been confiscated by the GST intelligence wing. This would send spine chilling news to others that if they conceal the business, they would be caught through other means as every one has to make the sale and the GST authorities have ways and means to trap the culprits. Even the provision stores are not making GST payments and they need to be raided.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #748797
    More information is now coming regarding this case and now ED ad DRI are investigating the case in more details. It is more than the tax evasion and we would be knowing more in the coming times.
    Knowledge is power.

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