E-Paper
Ludhiana: Three arrested for multi-crore GST fraud
Tejbir Singh Sidhu, deputy commissioner (state GST), Ludhiana, said the search and seizure operations were conducted at four premises, including the business premises of the accused, in order to gather evidence for establishing the modus operandi of getting fake invoices without actual receipt of goods.
Officials of the Special Investigation Team (SIT), Punjab State GST, Ludhiana, arrested three proprietors of city-based firms for allegedly claiming fraudulent Input Tax Credit (ITC), created by way of bogus invoices without actual purchase of goods (readymade garments) through purchases shown from bogus/non-existent firms.
Tejbir Singh Sidhu, deputy commissioner (state GST), Ludhiana, said the search and seizure operations were conducted at four premises, including the business premises of the accused, in order to gather evidence for establishing the modus operandi of getting fake invoices without actual receipt of goods.
A network of bogus firms using fake IDs in the name of various persons, including daily wagers, auto-rickshaw drivers etc, were created across five different states in order to pass on the fraudulent ITC to the final beneficiaries (accused).
Investigation revealed that the bogus billing network of non-existent firms was used to generate fake invoices of more than ₹350 crore, resulting in utilisation of genuine ITC worth more than ₹30 crore.
The accused had utilised about ₹23 crore of the total fraudulent ITC. The accused have been arrested under the provisions of GST laws and remanded to judicial custody for 14 days. Action against other beneficiaries is also being initiated.
The accused used the fraudulent ITC generated by way of fake invoices for the purpose of exports which were IGST paid and thereafter claimed refund from the customs authorities, added Sidhu.
