The police, on Saturday, booked a man for allegedly evading goods and services tax (GST) to the tune of ₹6 crore by running a fake company, registered in Jacobpura area of the city. The police are investigating the case.
The accused has been identified as Amit Kumar Garg, proprietor of M/s Mahadev Enterprises. According to the police, a physical verification by the taxation inspector revealed that the firm M/s Mahadev Enterprices was non-existent and non-functional, and that Garg was a fake dealer. During investigation it was found that he used fake input tax credit system, without actually receiving or supplying any goods, resulting in loss of revenue to the state and central exchequers.
“The dealer utilised fake input tax credit (ITC) for discharging output tax liability without actually paying tax. This resulted in subsequent tax evasion,” ACP (crime) Preet Pal Sangwan.
According to the police, the dealer conducted sale of ₹35,68,80,394/- (₹35.68 crore) during 2017-2018 (October 2017 to March 2018).
“The dealer has claimed input tax credit under the IGST Act and further issued fake tax invoices to different dealers located within the state of Haryana and outside the state. Garg has fraudulently obtained registration under the Haryana Goods and Services Tax Act, 2017 by means of fraud, wilful misstatement and suppression of facts with the purpose of evasion Tax,” the FIR read.
{{/usCountry}}“The dealer has claimed input tax credit under the IGST Act and further issued fake tax invoices to different dealers located within the state of Haryana and outside the state. Garg has fraudulently obtained registration under the Haryana Goods and Services Tax Act, 2017 by means of fraud, wilful misstatement and suppression of facts with the purpose of evasion Tax,” the FIR read.
{{/usCountry}}A case was filed against Garg under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code at the City police station on Friday.
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