The Directorate General of GST Intelligence (DGGI), Hyderabad, has arrested the director of a city-based firm which issued invoices worth Rs 139.93 crore without the supply of goods and services, leading to wrongful availment and utilisation of Input Tax Credit (ITC) to the tune of 19.7 crore.
The firm, which is into commercial real estate and IT/ITES services, have also availed and utilised ITC to an extent of Rs 14.9 crore on invoices worth Rs 98.48 crore without receiving any goods or services in violation of the provisions of the Central Goods and Services Tax (CGST) Act.
The accused has been remanded to judicial custody till October 6. According to DGGI officials, based on a tip-off searches were carried out across four States at several locations in Pune, Mumbai, Chennai, Kurnool and Hyderabad.
DGGI Hyderabad Zonal Unit teams carried out searches at four different premises in Hyderabad on Monday and recovered several incriminating documents, including the modus operandi of fake transportation documents related to invoices, which have been fabricated to falsely depict movement, supply and receipt of goods, even without the provision of a godown.
The company has also indulged in circuitous trading of invoices involving entities across India in order to boost the turnover and enhance their LC (Letter of Credit) and OD (Overdraft) limits, to qualify as bidder for major infrastructure projects. DGGI officials said the firm’s transactions in other states are also under the radar of the DGGI. Key managerial personnel of the company were also questioned.
Two bank accounts related to the company have been identified and provisionally attached, pending investigation.