Prima facie, an input tax credit of Rs 18.66 crore was used on false invoices. (Figurative)
Nagpur:
The GST Directorate General of Intelligence (DGGI) arrested two business enterprise owners from Aurangabad in Maharashtra in connection with alleged fraudulent transactions of more than 170.35 million rupees, according to an official statement.
Prima facie, an input tax credit of Rs 18.66 crore was used on false invoices and such invoices of Rs 14.10 crore were issued.
Officials from DGGI, Aurangabad Regional Unit, developed specific intelligence that two proprietary companies involved in the MS scrap / scrap trade were using and approving fraudulent ITCs on fake tax invoices without supplying any products, according to the statement issued by Nagpur. zonal unit, DGGI, on Saturday.
The searches were carried out by DGGI officials at multiple locations on December 3 and 4, during which various incriminating documents, such as diaries, were unearthed from many locations.
“A detailed examination of these documents revealed that the fake transactions had been coded by these companies with GST rates that reflected the amount of commission payable for the fake transactions, for example the GST rate of 5% meant a commission of 2 , 5% for both sides of the transaction counterfeiting, “he said.
“During interrogations, the owners admitted to having made false transactions,” he added.
The investigation has revealed that these taxpayers had cumulatively taken advantage of a fraudulent input tax credit of 18.66 million rupees on false invoices and had issued accumulated false invoices of 14.10 million rupees, according to the DGGI.
These crimes fall under clause (b) and clause (c) of subsection (1) of Section 132 of the CGST Act, 2017.
The defendants were arrested on Friday and placed in preventive detention until December 19, according to the statement.
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