GST intelligence agency arrests one in fake invoice case

Source: India Abroad News Service

June 21 (IANS) Continuing its crackdown on tax-evaders, the Directorate General of GST Intelligence (DGGI) on Friday arrested one more person for fraudulently claiming input tax credit (ITC) of over Rs 16 crore.

The case involves invoice value of Rs 322 crore on the strength of invoices issued by non-existent fake firms.

The probe has revealed that two firms linked with the accused passed on such fraudulently taken ITC to some of the well-established cotton yarn spinners who availed of it to discharge their GST liability against the outward supply, with an ulterior motive to defraud the public exchequer.

“Munish Kumar (accused) has, during the investigations conducted by the DGGI, admitted that both of the said firms had taken ITC fraudulently on the invoices issued by non-existent fake firms and then passed on such ITC to the various spinners,” a Finance Ministry statement said.

Accordingly, the statement said that Munish Kumar had committed offences under the provisions of Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017 which are cognizable and non-bailable offences under Section 132(5) of the CGST Act, 2017. The offence is punishable under Section 132(1)(i) of the CGST Act, 2017.

During the investigations conducted so far into the fake billing racket in the cotton industry, the DGGI has recovered an amount of Rs 28 crore towards the GST evaded.

“Further investigations in the matter are in progress,” the statement said.

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