Businessman arrested for GST evasion of ₹45 crore

In a major crackdown, the Directorate General of GST Intelligence (DGGI), Coimbatore zonal unit, arrested a businessman for evading Goods and Services Tax (GST) to the tune of ₹45 crore by running a fake bill trading racket.

A statement issued by K. Ramakrishnan, additional director general, DGGI, Coimbatore zonal unit, on Tuesday said that its officers conducted simultaneous search operations on Monday at the residence-cum-business premises of the man who is into cardamom trade, based on intelligence that he ran a fake bill trading racket without actual supply or receipt of goods.

The firm had obtained fictitious registrations across five States namely Uttar Pradesh, Maharashtra, Delhi, Kerala and Tamil Nadu with a view to generate and pass on fraudulent input tax credit (ITC). All these firms dealt with the trade of cardamom in Tamil Nadu and Kerala.

These firms controlled by the businessman have received invoices without supply of goods with a taxable value of approximately ₹840 crore, thereby availing and passing on fraudulent ITC of around ₹44.85 core to various entities, said the statement.

The person is stated to have set up and controlled 10 separate GST registrations, some of which created under his own PAN, while other companies were registered in the name of his relatives and friends in order to generate and receive invoices without supply of goods and also receive ITC from these fake companies to offset his outward GST liability. This resulted in huge loss of revenue to the Government.

During the search operations, incriminating documents such as sales and purchase copies of the fake firms and cheque books/pass books and debit cards of the bank accounts set up in the name of these fake firms were recovered from his residence and business premises.

The offender has admitted to have issued fake bills through multiple fictitious registrations by misusing the facility extended by Government under GST regime for ease of doing business. The proxy firms floated by him have availed or passed on ITC without actual supply or receipt of goods, said the release.

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Printable version | Apr 13, 2021 11:16:42 AM |

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