The taxation department, Punjab, on Monday arrested four persons from Jalandhar for alleged ₹48-crore goods and services tax (GST) fraud.
The suspects were allegedly running fake firms related to iron scrap, and had obtained GST registrations only to claim input tax credit (ITC) fraudulently by issuing only invoices without the supply of actual goods. An official spokesperson of the taxation department said that Pankaj Kumar, Ravinder Singh, Gurvinder Singh and Amritpal Singh were arrested. They were produced before the magistrate and sent to judicial custody.
The spokesperson said these persons were allegedly only showing circular trading of iron and plastic scrap and in lieu of that they were issuing fake invoices and generating fake e-way bills on scooters, motorcycles, cars, vans, tractors and fake vehicles having no records. He allegedly said that by creating bogus ITCs, these persons were passing on the same bogus ITC to other than end taxpayers, who adjusted their tax payment liabilities with this bogus ITC rather than paying the same on their own.