GST officers arrest man for fraud of rupee 50.03 crore input tax credit and bogus businesses
Agents at the Central Goods and Services Tax Commission (CGST), East Delhi uncovered a network of fictitious law firms which “was operated by a certain Vishal, who is a lawyer by profession and practiced law in Karkardooma Court, Delhi, âthe ministry said in a statement.
Vishal started this GST fraud by setting up a shell business in his own name, which he registered at his residence. Subsequently, he organized various KYCs of different people to set up several fictitious companies with no business activity and set up for the transfer of bogus input tax credit.
âSeveral KYCs and checks were picked up during the search of his residence. He used to pass on bogus input tax credits to his customers in exchange for a commission of 2% of the invoice amount. total of the bogus input tax credits transmitted was quantified thus until now, it is Rs 50.03 crore, which is expected to increase as the investigation progresses, âhe added.
The defendants were remanded in custody for 14 days until March 13.
Since the inception of the central GST tax, the Delhi area has made 27 arrests in various cases involving GST fraud amounting to more than Rs 4,019.95 crore, the ministry said.