BackGST officers bust network of 46 fake firms used to fraudulently claim ₹82 crore ITC
Since the inception of the GST Central Tax Delhi Zone, 21 have been arrests in various cases involving GST evasion amounting to more than ₹3,791.65 crore, the Ministry said.
PremiumGST officers have busted a network of 46 fake firms which used to generate fake invoices and fraudulently avail input tax credit (ITC) worth ₹82.23 crore, the finance ministry said on Tuesday.
"Through the use of extensive data analytics, officers of Delhi East GST were able to identify and unravel a network of 46 fake firms which were operating since 2017 and had passed on fake ITC to multiple of beneficiaries. The investigation conducted revealed that the fictitious firms were being controlled by Shri Arvind Kumar and his associates. He was arrested on 17 January and is in judicial custody till date," the finance ministry said in a statement.
The key associate of Shri Arvind Kumar, one Shri Kamal Singh (alias “Kamal Solanki"), had been absconding for the past one month. However, through persistent efforts the officers could finally apprehend Shri Kamal Singh who has confessed to have been involved in the racket of fake billing through which fake invoices of Rs. 541.13 crore were raised involving fake ITC of Rs. 82.23 crore, which is expected to increase as the investigation progresses.
Shri Kamal Singh was arrested under Section 69(1) of the CGST Act, 2017 and produced before the Duty Magistrate today, who remanded him to judicial custody of 14 days till 23 February. This is the second arrest made in the investigation.
It is pertinent to mention here that since the inception of GST Central Tax, Delhi Zone has made 21 arrests in various cases involving GST evasion amounting to more than Rs. 3791.65 crore.
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