One person arrested for Rs 50.03 crore input tax credit fraud

New Delhi: Officials of the Central Goods and Services Tax (CGST) Commissionerate, East Delhi, have disclosed a network of fictitious firms, used by operators to create and transfer fake Input Tax Credit (ITC) of Goods and Services Tax (GST). Was being done to do. The network of fake firms was operated by a person named Vishal, who is a lawyer by profession and practiced in Karkardooma Court, Delhi.

Vishal started this GST fraud by building a fictitious firm in his name, which he got registered in the name of his residence. Subsequently, he arranged several KYCs of different individuals to form several fake firms. These fake firms had no commercial activity and were created solely for the purpose of transferring fake input tax credits and cheating the government treasury.

A number of KYC and checks have been found during the search of his residence. He used to transfer fake input tax credit to his customers in return for a commission of 2 percent of the invoice amount. So far, the total amount of fake input tax credit has been fixed at Rs 50.03 crore, which is expected to be higher as the investigation progresses.

Vishal, the advocate, made a deep criminal conspiracy to defraud the government and willfully committed offenses under sections 132 (1) (b) and 132 (1) (c) of the CGST Act, 2017, which section 132 (5) of the Act Are cognizable and non-bailable offenses under the provisions of and punishable under clause (i) of sub-section 1 of section 132 of the Act. Mr. Vishal was arrested under Section 69 (1) of the CGST Act, 2017 and produced before the duty magistrate on 27 February 2021, who remanded him to 14 days of judicial custody till 13 March 2021. Further investigation is going on in the case.

It is noteworthy that since the establishment of the GST central tax, the Delhi zone has made 27 arrests in various cases involving an amount of over Rs 4019.95 for GST fraud.