The GST authorities are now examining the BharatPe ledgers for the past four years to see if any fake invoices for services have also been issued
The GST authorities are now examining the BharatPe ledgers for the past four years to see if any fake invoices for services have also been issued
The Goods and Services Tax (GST) authorities have expanded the investigation into alleged tax evasion by fintech firm BharatPe to include the reported issuance of fake invoices by people close to the company’s ousted co-founder Ashneer Grover, an official said .
The GST authorities are now examining the BharatPe ledgers for the past four years to see if any fake invoices for services have also been issued.
BharatPe had stripped Mr Grover and his wife Madhuri Jain of all positions after a preliminary report from an external audit commissioned by the fintech firm’s board showed the duo had indulged in alleged misdeeds and financial irregularities.
GST officials have been investigating BharatPe’s books for allegedly issuing invoices without actual delivery of goods since last year, and the Directorate-General of GST Intelligence (DGGI) conducted a raid at the fintech firm’s headquarters in October last year.
“The original GST evasion case involved issuing a fake invoice without actually delivering goods. Following the recent allegations against Madhuri Jain, we are now investigating issuing fake invoices without actual service,” the official said PTI.
GST investigators are examining the business books of BharatPe, which was established in April 2018, and would come to a final conclusion on the tax evasion in two weeks, the official added.
The GST law allows tax officials to examine the accounts of any company for the last five years.
BharatPe, which hired a law firm and risk consultants to conduct a more detailed investigation into allegations of financial irregularities, last month fired Ms Jain, BharatPe’s head of controls.
She was fired for alleged financial irregularities, including using company funds for personal visits abroad, beauty treatments, purchasing electronics and paying casual workers employed at her residence.
BharatPe, which allows shopkeepers to make digital payments via QR codes, stripped Mr. Grover of all titles and positions for his alleged “misdeeds” last week and could face further legal action, including recovering part of his holding.
