GST officials detect fictitious firms to help businesses evade, 1 arrested

Jan 18 2021 04:51 PM
GST officials detect fictitious firms to help businesses evade, 1 arrested

NEW DELHI: GST officials have arrested 1 person involved in running a multi-layered network of fictitious firms for generating fake input tax credit (ITC) worth crores of rupees to help businesses evade GST, according to an official statement on Monday.

The Central Goods and Services Tax (CGST) Commissionerate in east Delhi arrested the man and said the total fake ITC quantified so far is Rs 82.23 crore generated out of fake billing to the tune of Rs 541.13 crore, which is expected to increase as the investigation progresses.

''The network of fake firms was being operated by one Arvind Kumar who used to pass fake ITC for a commission of 4 to 4.5% of the invoice amount,'' said the statement issued by the CGST Delhi East Commissionerate.

An investigation conducted so far has revealed 46 firms to be fictitious which were being controlled by Kumar and his associates, it said. "These firms had no business activity and had been created solely for the purpose of passing on fake ITC," the statement said.

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