GST Evasion Alert: Chartered Accountant arrested in Meerut

CBI - GST Evasion - Arrest - Taxscan

The Directorate General of GST Intelligence (DGGI), Meerut Zonal Unit, has reportedly arrested a Chartered Accountant for fraudulently availing Input Tax Credit under the GST regime.

According to a report in Times Now, Directorate General of GST Intelligence (DGGI), Meerut Zonal Unit conducted searches at multiple locations in Delhi, Mumbai, Raipur, Varanasi, and Moradabad unearthed a major scam of fake invoices without the supply of goods by a group of people to defraud the government revenue.

DGGI sources said that they did it by way of encashment of fraudulent ITC availed on fake invoices through IGST export refund route.

It is reported that a Chartered accountant, namely, Gaurav Jindal, 27, has been arrested for allegedly running the racket. He was sent to Meerut jail for the offense on Tuesday.

Elaborating on the matter, senior intelligence officer Devender Kumar said, “These offenders created multiple companies/firms using either their own PAN card and voter id; or in the name of family members and employees of their firm solely for the purpose of fake billing without the supply of goods.

The search revealed that the firms issued fake invoices of more than Rs 210 crore in value thereby passing on and cashing on the input tax credit of about Rs 50 crore illegally.

“Interestingly these companies or firms are not engaged in normal business activities as they neither have any godowns for storage nor they receive or supply goods. They wrongly availed ITC without actual purchase of goods in their firms/companies and encashed the same by the issuance of export invoices and claiming IGST refund thereon from customs,” said DGGI intelligence officer Aishwarya Atri.

Till now, the Meerut Zonal Unit has unearthed more than 60 cases involving duty evasion of more than Rs 250 crore.

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