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Delhi GST detects huge evasion by Security agency

Published: Feb 16, 2020

By TIOL News Service

NEW DELHI, FEB 16, 2020: THE Delhi CGST sleuths arrested a Director of M/s Orion Security Solutions Private Limited, New Delhi (OSSPL), which provides security services to multinational companies, educational institutions and government departments, among others. The company had allegedly collected GST of Rs 7.87 Crores from their clients since July 2019 without depositing it into the exchequer. The total pending GST liability for Delhi branch office of OSSPL is estimated to be more than Rs. 22 crores till date. The company also allegedly collected GST of Rs. 3.15 crores on taxable services rendered to some of its clients but fraudulently mis-declared the same as exempted service in the GST returns, thereby indulging in outright evasion.

OSSPL has a GST liability of Rs. 88 Crores on pan-India basis out of which more than Rs. 50 Crores of GST has been collected by the company from its clients but not yet paid to the government exchequer. It is worth noting that the company has passed on Input Tax Credit to its clients without making payment of any tax.
The Director of OSSPL, who is the key person behind the operations, appears to have knowingly committed offence under the provisions of Section 132(1)(d) of the Central Goods & Services Tax Act (CGST), 2017, which is a cognizable and non-bailable offence, punishable under Section 132(5) of the CGST Act, 2017. Accordingly, the said person was arrested on 14th February, 2020 under Section 69(1) of the CGST Act, 2017 and remanded to judicial custody up to 29th February 2020 by the Chief Metropolitan Magistrate (CMM) in Patiala Court today, on 15th February, 2020.

Further investigation to unearth evasion is in progress.