Busting a ₹630-crore bogus billing racket, the zonal unit of the directorate general of goods and services tax intelligence (DGGI) on Thursday arrested a timber and plywood trader at Ferozepur Road.
The trader, Barinder Singh, had allegedly availed ₹98 crore input tax credit (ITC) through bogus billing by creating 12 dummy firms. Singh was arrested after DGGI search teams led by additional director Rituraj Gupta and joint director Daljit Kaur, comprising 35 officers, conducted raids at 16 locations. He has been sent to judicial remand till July 7.
Incriminating evidence was seized from the residential and business premises of the accused, including electronic and IT devices. Officials said Singh and his family members were operating three firms but had created 12 fictitious firms for issuing fake invoices to avail and pass inadmissible ITC without actually suppling goods through circular trading. The firms were created on the names of Singh’s employees or ex-employees.
The accused was found involved in bogus outward supplies of around ₹600 crore, involving ITC of ₹94 crore and bogus inward supplies of ₹630 crore involving ITC of ₹98 crore. It is suspected that the accused had been involved in circular trading for at least three years.
{{/usCountry}}The accused was found involved in bogus outward supplies of around ₹600 crore, involving ITC of ₹94 crore and bogus inward supplies of ₹630 crore involving ITC of ₹98 crore. It is suspected that the accused had been involved in circular trading for at least three years.
{{/usCountry}}The three trading firms of timber and plywood were found to be engaged in making outward supplies to six of the dummy firms. Those six firms were then making outward supplies to another six dummy firms and the goods were ultimately returned to the three firms operated by the accused.
An official said that different suppliers and buyers of these trading firms were under the radar of the department.