GST credit: Man held for issuing ₹49 cr bogus invoices in Ludhiana

An official, requesting anonymity, said the accused was arrested on the orders of DGGI additional director general Gurusharan Singh, following the pan India searches conducted by the DGGI and Directorate of Revenue Intelligence (DRI) about a month ago.

The Ludhiana zonal unit of Directorate General of GST Intelligence (DGGI) arrested a resident of Mandi Gobindgarh for allegedly getting input tax credit (ITC) of goods and services tax (GST) by issuing bogus sale bills.

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As per the information, the accused, Naresh Kumar, owner of Shree Ganesh Corporation, Mandi Gobindgarh, used to issue bills of a scrap firm without actual supply of goods or financial transaction.

An official, requesting anonymity, said the accused was arrested on the orders of DGGI additional director general Gurusharan Singh, following the pan India searches conducted by the DGGI and Directorate of Revenue Intelligence (DRI) about a month ago.

The official said during the investigation, it came to light that a firm, M/s Balja International, Ludhiana, which exports readymade garments, was found to have claimed integrated GST (IGST) refund by showing bogus supply from a few suppliers, which included Naresh’s firm.

The official further said Naresh had issued invoices showing sales worth ₹49.3 crore involving an ITC of ₹8.1 crore without supplying any goods, whereas his bank account details showed transactions worth ₹10 lakh only. The accused was produced before the chief judicial magistrate and remanded in judicial custody.