15 real estate players in Kerala are being investigated for GST fraud by DGGI

Oct 29, 2022 | GST FAQ, News | 0 comments

15 real estate players in Kerala are being investigated for GST fraud by DGGI

The Kochi zonal unit of the Directorate General of GST Intelligence (DGGI) for Kerala and Lakshadweep regions has unearthed GST irregularities to the tune of ₹420 crore on various counts during the 2021-22 financial year.

Two persons were arrested for GST fraud in the previous fiscal and one person so far during the ongoing 2022-23 fiscal.

Large-scale GST fraud has been detected in the real estate sector in Kerala on examination of documents by the DGGI authorities. Steps have been initiated against 15 players in the sector.

Among the frauds detected are misuse of input tax credit, non-payment of GST on share givens to landowners, not revealing the actual turnover details, etc, accounting for ₹50.84 crore. Of this, ₹26.01 crore has already been recovered. The DGGI authorities have warned that those not paying tax on time will be slapped with fine and interest for delayed payment.

Builders collecting cash from consumers before the completion of houses, flats or apartments or before they are handed over are bound to pay GST for the construction service. However, builders who collect cash from customers only after construction are exempted.

Builders claiming input tax credit for construction materials and services at the launch of the construction of apartments are bound to refund input tax credit on materials and services for apartments exempted from GST on completion of construction.

Sources = https://www.thehindu.com/news/cities/Kochi/dggi-initiates-action-against-15-real-estate-players-in-kerala-for-gst-fraud/article66065548.ece

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