The first arrest in Bihar-Jharkhand has been reported as the GST intelligence team comprising officers of directorate general of GST intelligence, Jamshedpur regional unit, had arrested a Rajasthan- based trader for GST evasion worth nearly `10-crore here late on Tuesday evening.
The trader had been summoned at GST intelligence office, was arrested when preliminary investigation revealed that fake invoices were generated without actual receipt/supply of goods or services, reports said.
According to sources, he availed input tax credit wrongfully (credit manufacturer’s received for paying input taxes towards inputs used in the manufacture of products) which caused a huge revenue loss to the government.
Confirming the news, the deputy director GST intelligence, Jamshedpur regional unit, Gautam Kumar said this is the first arrest under the provisions of the CGST Act 2017 in Bihar-Jharkhand. The trader was remanded in judicial custody to Ghaghidih Central Jail yesterday late evening.
The arrested person is the main culprit behind the entire conspiracy along with a few unknown at this point of time. It involves the modus of generating/procuring fake invoices without actual receipt/supply of goods or services, he pointed out.
GST intelligence unit sources revealed that M/s Shrimali Industries Private Limited at Jodhpur and Gandhidham (Gujarat), M/s Vaibhav Enterprises Jodhpur and M/s Shrimali Alloys, Gandhidham had received fake invoices from M/s Sidhi Vinayak Metal and Salt Company Private Limited (Bokaro), M/s Ridhi Sidhi Enterprises (Jaipur), without actually receiving any goods or services from them.
An official said investigation has revealed that a modus operandi is being followed whereby fake invoices are being generated for goods which have not been supplied at all. Based on these invoices, some entities are claiming input tax credit. Besides, without actually exporting goods, some entities are claiming GST refunds based on fake invoices.
