Intelligence wing of Central Board of Indirect Taxes, on Friday, said it has arrested three persons from Ahmedabad in a Rs 400 scam of fake billing involving fraudulent utilization of Rs 70 crore worth of Input Credit Tax (ITC). Close to a dozen companies are found to have been involved in the scam but just one company had conducted fake bills worth Rs 100 crore and got Rs 18 crore worth of ITC in a fraudulent manner. So far searches have been conducted in Ahmedabad alone, sources say investigations are on in other parts of the state as well.
Acting on intelligence regarding fraudulent availing and utilization of ITC under GST regime, Ahmedabad Zonal Unit of Director General of GST Intelligence (DGGI) conducted simultaneous searches at 14 business and factory premises of these entities recently. This revealed issuance of fake invoices without supply of goods involving an amount of more than Rs 400 crore with total tax evasion worth Rs 70 crore in form of claiming ITC through fraudulent means. Of these, only one company is involved in the issuance of fake bills worth Rs 100 crore and 18- 20 crore worth of ITC. The agency on the basis of incriminating evidence in the matter.
Authorities have arrested Mitesh Roshanlal Shah, proprietor of M/s Arihant Metal Co; Badal Shambhulal Shah, proprietor of M/s Rajat Metal Corporation; Mitesh Patel, director of M/s Nandeshwari Steel Limited. All of them hail from Ahmedabad. “Key persons involved in the offence have confessed to the crime and have admitted having issued invoices fraudulently. In this case, not only the key persons involved in the racket have been identied but the nal beneciary of the fraudulent ITC has also been identied and the entire chain of fraudulent transactions has been unearthed,” said a statement from local CGST office.