GST officials arrest man for passing fake ITC of Rs 38.91Cr
By TIOL News Service
NEW DELHI, MAR 02, 2021: THE officers of Central Goods and Service Tax (CGST) Commissionerate, Delhi East arrested a man for operating a network of fictitious firms that issued fake bill of Rs. 216 crore to avail fraudulent Input Tax Credit of almost Rs. 39 crore.
The Finance Ministry said on Tuesday that the CGST officials used information from the NETRA (Network Exploration Tool for Revenue Augmentation) analytic tool to identify the network being operated by Mr Nihaluddin.
"Investigation revealed that the multi-layered network was being operated by one Mr Nihaluddin who has confessed to having created a fake firm in his own name and also arranging ITC from 38 other fictitious firms on commission basis to pass on fake ITC to multiple beneficiaries," said the officials.
The investigation has so far established the issuance of fake bills of Rs 216.06 crore involving fake ITC of Rs. 38.91 crore, which is expected to increase as the investigation progresses.
Mr Nihaluddin was arrested and produced before the magistrate on March 1 and remanded to 14 days of judicial custody.
Notably, since the inception of Goods and Services Tax (GST) Central Tax, Delhi Zone has made 28 arrests in various cases involving GST evasion amounting of more than Rs. 4,058.86 crore.
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