GST officers arrested a man for ITC fraud of Rs. 38.91 Cr, from 38 fake firms.

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ITC fraud

The officers of Central Goods and Services Tax (CGST) Commissionerate of Delhi, have unearthed a network of fictitious firms used by their operator to generate and pass on fake Input Tax Credit (ITC) of Goods and Services Tax (GST).

Investigation revealed that the accused Nihaluddin was operating a multilayered network in his own name and also arranging ITC from 38 other fictitious firms on commission basis to pass on fake Input Tax Credit (ITC) to multiple beneficiaries.The accused has further confessed the crime.

The investigation has so far established the issuance of fake bills of Rs 216.06 crore involving fake Input Tax Credit (ITC) of Rs. 38.91 crore, which is expected to increase as the investigation progresses.

The accused Nihaluddin is covered under Section 132(1)(b) of the CGST Act, 2017 which is cognizable and non-bailable offences as per the provision of Section 132(5) and punishable under clause (i) of sub section 1 of Section 132 of the Act ibid. Accordingly, he was arrested under Section 69(1) of the CGST Act, 2017 and produced before the Duty Magistrate on Monday who remanded him to judicial custody of 14 days.

Further investigation in the case is underway.

In an on going drive to counter the menace of fake billing. since the inception of GST Central Tax, Delhi Zone has made 28 arrests in various cases involving GST evasion amounting of more than Rs. 4058.86 crore.

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