GST officials have busted a fake invoice trading racket and arrested a person for passing on input tax credit (ITC) of over Rs 50 crore, a source said on Sunday. The Directorate General of GST Intelligence (DGGI), Pune Zonal Unit, has arrested Tusshar Ashok Munoat who was into ‘trading of fake invoices’ and used to generate fake invoices on commission basis for ineligible ITC availment and pass it on to others fraudulently.
Total ITC involved is Rs 52.19 crore approximately, the source added. Munoat owns M/s Rutu Enterprise and a few other companies such as M/s Reise Enterprises, M/s Namo Enterprises and M/s Patil Contractor, and used to trade fake invoices to earn commission benefit.
The Finance Ministry source also expressed dismay on those lobbying to oppose ‘arrest’ as an essential preventive measure in GST to curb unbridled dishonest activities by such unscrupulous elements and are challenging the provision of arrest in GST in various courts. The source further said that the government has started use of Aadhaar number in GST registration to check the menace of bogus/fake firms and thereby, put a curb on fraudulent availment and passing on of ITC.
Also, serious deliberations are going on in the Department of Revenue for putting such dubious firms under the risk category and to block their refunds, besides other appropriate legal actions, as necessary. The source further said that after tracing for long, Munoat was arrested on October 21 from a remote village in Osmanabad district of Maharashtra. He was produced before a Magistrate who rejected his bail application and remanded him to judicial custody till November 2.
Pune-based M/s Rutu Enterprises had four GSTIN numbers, one each for Maharashtra, Madhya Pradesh, Himachal Pradesh, and Uttar Pradesh; and was shown engaged in civil work such as interior work, construction of building/roads/bridges, pipe line laying work, earth work, electric work, among others.