Meerut: GST fraud worth Rs 140 crore unearthed, 2 held

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Central GST Meerut has unearthed a case of issuance of fake GST invoices without actual supply of goods and passing on the said fraudulent input tax credit (ITC) to other firms after circulation of invoices through other non-existing firms. In all, the two arrested brothers Anshul Agarwal and Archit Agarwal, both residents of Moradabad are charged with issuing fake billing worth Rs 140 crore and taking benefit of Rs 25 crore worth ITC.

They have been booked under relevant sections of the GST Act and produced before an Economic Offences Wing court in Meerut. According to officials, the two deal in edible oil.

Principal Commissioner, CGST, Meerut, Satendra Vikram Singh said, “The brothers, who are in the agro oil business, had started companies where no physical movement of goods used to take place but fake invoices were released against which input tax credit was availed. During the search conducted at 13 premises in UP, Punjab, Haryana and Delhi, various incriminating records, cash Rs 14.99 lakh, accounts, checkbooks of more than 15 non-existent companies were seized.”

The two were arrested under section 69 of the CGST Act. Both have been sent to jail for 14 days by the orders of the special chief judicial magistrate.

According to officials, the modus operandi involved the circulation of fake ITC through a chain of non-existent firms by registering them at non-existing addresses. These firms were subsequently used to issue fake invoices and ITC passed on to existing firms for further utilisation in the payment of GST. One such firm was owned by one of the accused brothers.

“The investigations are still on and more revelations will come out in days to come,” said Singh.

Source from: https://timesofindia.indiatimes.com/city/meerut/gst-fraud-worth-rs-140-crore-unearthed-2-held-as-probe-spans-4-states/articleshow/80306211.cms

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