GST Dept arrests Women Director in Scam of Rs. 43 Crores

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On Saturday, a women director was arrested by the GST commissionerate, Chennai in connection with a scam of Rs 43 crore. The arrested person, Poonam Sharma, director of three firms, was held for fabricating fake GST invoices to claim an input tax credit to the tune of Rs 43 crore.

 “Poonam Sharma, director of Nadesh Trade Impex Private Ltd, Anmol Ferro Impex Private Ltd, and Vivan Trade Impex Private Ltd, has been arrested after we found that there is a fake GST invoices racket,” said Chennai north principal commissioner Rakesh Kumar Sinha.

The arrest was based on an information received by the department that the companies received fake invoices without receipt of goods. The three companies also created fake invoices to show the supply of goods to other companies to earn the commission. In reality, no commodity was sold.

Sharma admitted during the investigation that she received invoices without any transaction of goods. She admitted to availing input tax credit to the tune of Rs 43.52 crore with fake invoices, said Sinha.

Recommended By Colombia “The three companies in which Sharma is a director received a commission for the input tax credit availed by other companies without trading in any goods,” said Sinha.

Sharma has been arrested under the provision of GST Law and has been remanded in judicial custody. “This is the third such arrest from Chennai city alone on the issue of using fake invoices to avail input tax credit. Further investigation is on. We are taking efforts to curb GST evasion by traders,” the official said.

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