GST: One arrested for evasion of Rs 177.64 Crores

GST Fraud - Taxscan

The Central Goods and Services Tax ( GST ) department has arrested a person for allegedly issuing fake invoices to claim Rs 177.64-crore input tax credit.

The 29-year-old man, identified as Ehsas Ali Saiyad, a resident of Vadodara, was the mastermind of a scam involving issuing of fake invoices, said the office of the Central GST and Central Excise Commissionerate in a release in Gandhinagar.

The accused was allegedly floated 66 fake companies with as many dummy owners in whose name he issued tax invoices to claim the input tax credit (ITC), it said.

Also Read: GST: Company Director, Accountant arrested for Evasion

He formed dummy companies by obtaining GST registration, GST identity cards, login-password, SIM cards, bank accounts and online passwords in the name of dummy owners, said the commissionerate.

“The accused would issue fake bills in the name of the entities created by him. He issued tax invoice of taxable value of Rs 1,210 crore to claim the input tax credit of Rs 177.64 crore,” it said.

He was arrested under provisions of the CGST Act and further investigation was on, said the release.

Under Goods and Services Tax, input credit is the tax benefit manufacturers get for the GST they pay on the purchase of goods. Unscrupulous elements use fake bills to claim higher ITC.

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