DGGI arrests company director for fraudulently availing ₹ 49.2-crore input tax credit

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Officials of the Directorate General of GST Intelligence’s (DGGI) Nagpur zonal unit have arrested a company’s director for fraudulent availment of an input tax credit of ₹ 49.19 crore.

In a statement, DGGI Additional Director (Nagpur Zonal Unit) Pradeep Gurumurthy said that as part of the ongoing drive against fake invoices and non-existent entities, an information was received that an entity had obtained a GSTIN at Nagpur only on paper, and transactions worth hundreds of crores were being carried out.

The entity provides work contract services at various locations in the country. He added that a series of searches were carried out at different locations, which revealed that the GSTIN had no physical presence at Nagpur.

Apparently, fake documents with forged signatures were uploaded on behalf of this entity to obtain GST registration and in order to hide the non-existent nature of this entity, Mr. Gurumurthy said.

“The director of this non-existent GSTIN was traced in Raipur (Chhattisgarh) and was confronted with the evidences unearthed and was arrested at Nagpur under Section 69 of the CGST Act, 2017,” he said.

The court has rejected bail, and he has been sent to judicial custody till December 8, he added.

Source from: https://www.thehindu.com/business/Industry/dggi-arrests-company-director-for-fraudulently-availing-492-crore-input-tax-credit/article33240526.ece