GST officials arrest 1 person for Rs 94 crore input tax credit fraud
Kumar was involved in creating and operating fake firms using identification documents of his friends and employees, the Finance Ministry said in a release.
- Mar 26, 2021,
- Updated Mar 26, 2021 10:29 PM IST
Officers of CGST Delhi North Commissionerate have arrested one person for input tax credit fraud of around Rs 94 crore.
The officers zeroed in on the person, Krishan Kumar, through data analysis and gathering intelligence. Kumar was involved in creating and operating fake firms using identification documents of his friends and employees, the Finance Ministry said in a release.
Also read: 'Taxpayers free to use ITC': FinMin on reports of pressure tactics use by GST officers
"As per investigation conducted so far, a total of 5 fake firms namely M/s Shradha Traders, M/s Anshara Impex, M/s Vijeta Enterprises, M/s SM Agencies and M/s Deepasha Sales were created by him for the issuance of goods-less invoices for items like butter/ghee/oil and passed on inadmissible Input Tax Credit (ITC) of Rs 94 crore approx," the release said.
During search at his residence, the officials found 'incriminating documents' like ATM cards, signed cheques, bank documents, stamps of dummy firms including stamp of the transport company as mentioned in the e-way bills of the fake firms and outer packets/cases of SIM cards of mobile phones used for registration of firms.
Kumar was arrested on Thursday and sent to 14-day judicial custody. Further investigation in the matter is underway.
During 2020-21, CGST Delhi Zone has arrested 40 persons in various cases involving GST evasion amounting to Rs 5,310 crore.
Also read: CBI raids 100 locations in bank frauds over Rs 3,700 crore
Officers of CGST Delhi North Commissionerate have arrested one person for input tax credit fraud of around Rs 94 crore.
The officers zeroed in on the person, Krishan Kumar, through data analysis and gathering intelligence. Kumar was involved in creating and operating fake firms using identification documents of his friends and employees, the Finance Ministry said in a release.
Also read: 'Taxpayers free to use ITC': FinMin on reports of pressure tactics use by GST officers
"As per investigation conducted so far, a total of 5 fake firms namely M/s Shradha Traders, M/s Anshara Impex, M/s Vijeta Enterprises, M/s SM Agencies and M/s Deepasha Sales were created by him for the issuance of goods-less invoices for items like butter/ghee/oil and passed on inadmissible Input Tax Credit (ITC) of Rs 94 crore approx," the release said.
During search at his residence, the officials found 'incriminating documents' like ATM cards, signed cheques, bank documents, stamps of dummy firms including stamp of the transport company as mentioned in the e-way bills of the fake firms and outer packets/cases of SIM cards of mobile phones used for registration of firms.
Kumar was arrested on Thursday and sent to 14-day judicial custody. Further investigation in the matter is underway.
During 2020-21, CGST Delhi Zone has arrested 40 persons in various cases involving GST evasion amounting to Rs 5,310 crore.
Also read: CBI raids 100 locations in bank frauds over Rs 3,700 crore