The issue of tax fraud allegations against the Rajasthan Cricket Association (RCA) has caused quite a stir, just hours before the IPL match was to be played in Jaipur. The Central Goods and Services Tax (CGST) department issued a notice to the RCA, accusing them of fraudulently claiming input tax credit of Rs 22 crore.
The transactions made by the RCA are currently being investigated, and the management of the Rajasthan Royals is also reportedly under scrutiny. This notice came as a shock to the RCA, as they had claimed that the tax bills were genuine and the construction work worth Rs 22 crore was done in the stadium before the ongoing IPL.
Sources reported that the Rajasthan Cricket Association and Rajasthan Royals allegedly evaded tax. Now, when the CGST team came to know about the fact, they investigated the entire matter. During the probe, documents of tax evasion worth crores of rupees have also been found in the distribution of complimentary tickets of the match.
The CGST team is thoroughly investigating the matter, and as per sources, most of the GST bills that were produced by the Rajasthan Cricket Association and Rajasthan Royals regarding the construction done in the stadium and complimentary passes issued before the IPL match were found to be fake. The officials of the Central Goods and Services Tax Department and the RCA are refraining from commenting on the matter.
After the notice, the RCA deposited Rs 10 crore in the Central Goods and Services Tax Department on behalf of the Rajasthan Cricket Association. The haste with which this deposit was made has raised eyebrows, and many suspect it is an attempt to cover up the tax fraud.