A daily-wage worker in Telangana’s Bhadradri Kothagudem district was left stunned after receiving a notice from commercial tax officials, demanding a staggering Rs 22.86 lakh in pending Goods and Services Tax (GST) dues for business transactions allegedly made in 2022.
The worker has no known business operations and survives on daily earnings. The notice, sent by the Commercial Tax Department, has raised serious concerns about potential identity theft and GST registration fraud.
The incident has sparked speculation about the misuse of personal details for fake GST registrations. This is not the first instance where unsuspecting individuals have been targeted in GST fraud schemes. Tax evaders often exploit loopholes in the system by registering businesses under stolen identities to carry out fraudulent transactions and evade taxes.
J. Venkateswarlu, a resident of Chandrugonda mandal headquarters, received a notice from the assistant commissioner of commercial taxes in Vijayawada, demanding GST payment for a granite business allegedly operated in 2022 under the name Bhagyalakshmi Enterprises, registered at an address in Vijayawada.
Upon visiting the specified address on Wednesday, Venkateswarlu discovered that no such office existed there. Perplexed by how a license was issued in his name without his knowledge, he informed officials that he had applied for a PAN card only six months ago and did not possess one in 2022 when the supposed business transactions took place.
Officials suspect that someone may have misused his Aadhaar card to obtain a PAN card and carry out transactions under his identity. Faced with an unexpected and substantial GST liability, Venkateswarlu has been tirelessly approaching authorities, trying to prove that he had no connection to the granite business conducted in his name.
Tax Notice Shocks Daily-Wager
According to reports, the worker received an official communication stating that he owed Rs 22.86 lakh in GST from business transactions linked to his name and PAN details. However, he claims to have never registered any business or been involved in commercial activities that warrant such taxation.
This shocking development has put the worker in distress, as he struggles to comprehend how his identity was misused for fraudulent tax registrations and transactions.
Possible Identity Theft and GST Fraud?
The incident has sparked speculation about the misuse of personal details for fake GST registrations. This is not the first instance where unsuspecting individuals have been targeted in GST fraud schemes. Tax evaders often exploit loopholes in the system by registering businesses under stolen identities to carry out fraudulent transactions and evade taxes.
Authorities Urged to Investigate
The worker has sought legal assistance and appealed to authorities for a thorough investigation. Local officials and tax experts are urging the Commercial Tax Department to verify the legitimacy of such registrations and take stringent action against those responsible for misusing personal data.
Rising Cases of GST Frauds in India
Incidents of GST fraud have been on the rise in India, with fraudsters using fake invoices and bogus business entities to claim input tax credits illegally. The government has been implementing stricter measures, including Aadhaar-based authentication, to curb such fraudulent activities.
What Should You Do if You Receive a Fake GST Notice?
Experts advise individuals to:
- Verify GST notices on the official GST portal.
- File a complaint with the GST department and police if fraud is suspected.
- Regularly check their PAN and Aadhaar-linked business registrations.
The Telangana case highlights the urgent need for stronger security measures to prevent misuse of personal details and protect innocent individuals from undue financial and legal burdens.
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