The Central Goods and Services Tax (CGST), Delhi West Commissionerate has arrested a person who created more than 30 fake firms. The investigation was based on the special drive against fake registrations.
During a Special Drive against fake registrations, the CGST Delhi West Commissionerate, operating under CGST Delhi Zone, conducted an investigation on a particular entity. As a result of this analysis, it was discovered that multiple entities were registered using the same address.
However, upon verification, it was found that the address was valid, but the owner of the premises claimed to have no knowledge of any firms operating there. Further examination of the supply chain indicated that there was no movement of goods from the mentioned address.
Consequently, based on data analytics, searches were conducted at various locations in Delhi. These searches revealed that an individual named Shiva had been obtaining Know Your Customer (KYC) credentials from people by deceiving them with promises of securing loans on their behalf. Subsequently, he would sell the created firms.
Further investigation uncovered that Shiva had established over 30 fraudulent firms and sold them for cash at a higher price. Shiva admitted that he utilized AADHAR authentication to acquire these GST registrations, thus evading physical verification.
It was brought to light that these numerous firms had wrongfully claimed or transferred ineligible Input Tax Credit (ITC) amounting to over 50 crore. As a result, Shiva was taken into custody for violating Section 132 of the CGST Act, 2017. Today, he was remanded to judicial custody.
The investigation is currently ongoing to gather further information and evidence in the case.
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