The Directorate General of GST Intelligence (DGGI) and CGST Commissionerates have arrested 12 persons in a single day including a Chartered Accountant as a part of the ongoing nationwide drive against fake GST invoice frauds since mid-November last year.
The arrested persons include fake entities operators and the end beneficiaries who connive with these fraudsters involved in bogus firms and/or issuance of fake invoices to fraudulently avail and pass on input tax credit (ITC) without actual supplies of goods/services.
The Chartered Accountant arrested is Abhishek Singhal who was involved in running fake firms to issue fraudulent invoices. He is the 10th Chartered Accountant arrested so far who has been involved in bogus firms and/or issuance of fake invoices to fraudulently avail and pass on ITC without actual supplies of goods/services.
The CGST Jaipur Zone noticed that CA Abhishek Singhal was involved in three fake firms which were generating goods-less invoices of miscellaneous commodities. He did not cooperate with authorities during investigations, following which a charge sheet was filed against him in the Economic Offences Court where he surrendered later and was sent to judicial custody.
The drive against fake GST invoice frauds has pushed GST collections to record highs for over three months. GST mop-up stood at Rs 1.15 lakh crore in December 2020 and Rs 1.20 lakh crore in January 2021. Sources expect a similar trend in collections to continue this month as well.
While the GST intelligence and Central GST authorities have booked more than 3,200 cases against 9,600 fake GSTIN entities since the launch of the nationwide drive against fake invoice frauds in mid-November last year, the authorities have also recovered more than Rs 1,000 crore from these fraudsters.
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