GST authorities detect fake companies in cotton trade

The Central Goods and Services Tax (CGST) authorities have detected a scam by three shell firms which sold cotton to five firms of Ludhiana. The firms based in Ludhiana later claimed the input credit tax (ICT) to the tune of Rs 7.5 crore from the authorities. After detecting the fraud, the CGST, Hisar, reported the matter to their counterpart in Ludhiana to cancel the ICT claim of these firms. A C…