SIT arrests three for tax fraud - ECAS Punjab

SIT arrests three for tax fraud

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Tribune News Service
Chandigarh, November 10

In a major crackdown on tax fraudsters, a special investigation team (SIT) of the the Punjab GST Department, Ludhiana, today conducted raids on various proprietors and arrested three persons allegedly involved in fraudulent input tax credit (ITC) by using bogus invoices of non-existent firms without actual purchase of goods (readymade garments).

Accused got ITC worth Rs30 cr

  • Bogus firms used fake IDs created across five states to pass on fraudulent input tax credit (ITC) worth Rs30 cr to accused
  • Accused used fraudulent ITC for purpose of exports, which were IGST-paid, and claimed refund from customs authorities

A spokesperson for the department said search and seizure operations by its teams were conducted on four premises, including business premises of the accused, to collect evidence for establishing the modus operandi that involved utilising fake invoices without actual receipt of goods.

A network of bogus firms using fake IDs in the name of various persons, including daily wagers, waiters, auto-rickshaw drivers, etc, were created across five states in order to pass on the fraudulent ITC to the final beneficiaries (accused).

The spokesperson said the accused used the fraudulent ITC for the purpose of exports, which were IGST-paid, and thereafter claimed refund from the customs authorities.

Investigation revealed the bogus billing network of the non-existent firms was used to generate fake invoices of more than Rs 350 crore, resulting into utilisation of ingenuine ITC total worth over Rs 30 crore.

The three accused, who had utilised Rs 23 crore of the amount, have been arrested under provisions of GST laws and remanded in judicial custody for 14 days. Action against other beneficiaries was being initiated and further investigation was on.



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