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Thursday, December 2, 2021

One man driving 46 fake companies, arrested; Big fraud of GST theft busted

These companies were being used to create fake input tax credits. (Representational Image)

Goods and Service Tax (GST) officials arrested a person after busting a big fraud. This person was operating 46 fake companies and had created fake input tax credit (ITC) of Rs 82.23 crore. This information was given by the Finance Ministry on Monday. Officials of the Central Goods and Services Tax Commissionerate (CGST) in East Delhi busted a network of many fake companies. These companies were being used to create fake input tax credits.

This network of fake companies was run by a person named Arvind Kumar, who was making fake ITC to get 4 to 4.5 percent commission of the invoice amount.

According to the statement issued by the ministry, so far the investigation has revealed that 46 companies are fake, which Kumar and his associates are running jointly. These companies are not involved in any kind of business. Their purpose is only to create a fake input tax credit.

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The network has been operating since 2017

The ministry says that the total fake ITC has been generated so far at Rs 82.23 crore. These amounts are based on fake billing of Rs 541.13 crore. This amount can increase further as the investigation progresses.

The ministry says that after a thorough investigation into data analytics, officials identified 21 locations and conducted a search operation between January 15-17. It was found that the network of fake companies has been operating since 2017 and fake ITCs are being generated. Kumar has been arrested by GST officials. He has been sent to 14 days judicial custody till 31 January.

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