GST officers arrest 3 persons for Rs 12.90 cr ITC fraud by fake invoicing

GST investigation officers have arrested three persons for fraudulently claiming Rs 12.90 crore input tax credit by issuing fake invoices, the Finance Ministry said on Thursday.

GST investigation officers have arrested three persons for fraudulently claiming Rs 12.90 crore input tax credit by issuing fake invoices, the Finance Ministry said on Thursday. ''The Directorate General of GST Intelligence (DGGI), Gurugram has arrested three persons -- Alok Bhargava and his sons Akul and Atin Bhargava, owners of M/s Delhi Foils, M/s Abinox Industries and M/s Matalax Industries, Wazirpur, New Delhi,'' it said in a statement.

These firms had cumulatively taken input tax credit of Rs 12.90 crore fraudulently, involving invoice value approximating Rs 72 crore on the strength of invoices issued by non-existent firms without the actual receipt of material with an ulterior motive to defraud the government exchequer, the ministry said. The three persons were arrested on December 30 and were remanded to 14-days judicial custody.