In another crackdown against businessmen fleecing exchequer by claiming forged GST refunds, Ludhiana unit of Directorate General of GST Intelligence (DGGI) on Thursday arrested Naresh Kumar, proprietor of Shree Ganesh Corporation, Mandi Gobindgarh. The accused allegedly showed bogus sales worth Rs. 49.33 crore in his business and claimed forged input tax credit (ITC) worth Rs. 8.11 crores.
The arrest was made under orders of DGGI’s additional director General Gurusharan Singh and the accused will be produced by department in court to seek his judicial remand. According to highly placed sources in the department, the accused businessman has allegedly been passing Input Tax Credit of GST by issuing bogus sale bills, mainly of MS Scrap without actual supply of goods. This arrest is fallout of a massive search operation which was conducted on September 12th jointly by DGGI and DRI in which raids were conducted at 336 locations in India including a Ludhiana firm Balja International, which is exporter of readymade garments was found to have claimed IGST refund by showing bogus supply from a few suppliers including firm of Naresh Kumar.
Sources also disclosed that accused had issued sale invoices showing sale worth Rs.49.33 crore involving ITC of Rs.8.11 crore without supplying any goods. In order to further substantiate the fact that the sales shown by Kumar were ingenuine, DGGI sleuths scanned his bank accounts and their suspicion of bogus billing was confirmed after only Rs. 10 lakh worth entries were found in his account as against sales of Rs. 49.33 crore. Sources also confirmed to TOI that DGGI is also going to investigate other entities who have indulged in similar fake billing and passing of bogus ITC to exporters and manufacturers.