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Two arrested in Pune for defrauding govt with fake GST invoices worth ₹700 crore
The arrests were made by officials of the Central GST commissionerate in Pune, according to VN Mangaraju, joint commissioner of Central GST-2 Commisionerate, Pune.
Two people were arrested on Friday for allegedly defrauding the government of approximately ₹ 700 crore by issuing fake Goods and Services Tax (GST) invoices. The arrests were made by officials of the Central GST commissionerate in Pune, according to VN Mangaraju, joint commissioner of Central GST-2 Commisionerate, Pune.
The two were identified as Amit Ashok Thepde and Vias M Atal, partners of two firms called Reliable Multitrading and Himalaya Tradelinks, according to a statement issued by joint commissioner Mangaraju.
“The two firms obtained GST registration and have together issued fake GST invoices of approximately ₹700 crores with GST component of ₹54 crore to facilitate bogus input tax credit (ITC) claims and dupe the government exchequer,” read the statement.
The non-existent transport of goods was proved using fake lorry receipts and GST e-way bills, according to the statement.
The two companies had a valid GST number and registeration. However, the companies, according to the CGST commissionerate, exist only on paper and facilitate forged transactions which are also only on paper. These transaction details are then provided to other companies who use it to claim ITC without doing the transactions required to claim it.
The two were arrested under Section 69(1) of CGST Act, 2017. The two have confessed to having committed the crimes, according to the officials. The GST commissionerate officials are now investigating the companies which were in business with the two firms.
