Builder availed fraudulent Input Tax Credit of Rs. 4.86 crore on fake invoices
Mumbai/Nagpur: The Directorate General of GST Intelligence (DGGI) sleuths have arrested a prominent builder of Nashik regarding availment of fraudulent Input Tax Credit, in the Rs. 131 crore fake inter-state invoice racket.
In the ongoing investigation regarding on fake invoices, information was received by DGGI that the builder was availing fraudulent Input Tax Credit on fake invoices issued by non-existent entities and was utilising this fake Credit for discharging its outward GST liabilities.
Also read: Rs. 131 crore fake inter-state invoice racket busted
During the searches, the DGGI officials found that the builder had cancelled the earlier registration and had obtained a new registration under a different management in order to avoid detection. However, with the help of online data mining tools, the entire details of the cancelled registration were obtained and the availment of fraudulent credit was confirmed.
It was observed that the builder had availed fraudulent Input Tax Credit of Rs. 4.86 crore on the basis of invoices issued by certain entities in West Bengal which were non-existent and had not supplied any goods or services to the builder. “When confronted with the facts, the availment of fraudulent Input Tax Credit on paper transactions was admitted by the builder during interrogation,” a Ministry of Finance press note stated today.
The Builder was thereafter arrested by the officials of DGGI, Nashik Regional Unit on the basis of Arrest Authorization issued by the Additional Director General, DGGI, Nagpur Zonal Unit. “The entire amount is expected to be recovered soon and an amount of Rs. 25 Lakhs have already been paid by the builder so far,” the DGGI stated.
– globalbihari bureau
