GST officers arrest 3 persons for passing on fake ITC of Rs 121 cr
GST officers have arrested 3 persons, including a Chartered Accountant, on charges of creating and operating fictitious firms for passing on fake input tax credit (ITC) worth about Rs 121 crore, the Finance Ministry said on Wednesday.
From the investigation conducted till date, it has been established that one of the arrested persons has created at least 13 firms and has been involved in availing and passing on total fraudulent ITC of Rs 121 crore.
''The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested 3 persons including a CA on charges of creating and operating multiple fictitious firms on forged documents and passing large amounts of fake ITC by way of issuance of invoices without any actual receipt or supply of goods or services,'' the Ministry said in a statement.
It has also emerged that the person who had created the fake/dummy firms worked in tandem with a commission agent, who has also been arrested.
The investigation spanned multiple locations and based on verifications, evidence and statements recorded, it has appeared that the three persons were operating in tandem orchestrating this racket of making fake firms on forged documents and having passed on fraudulent ITC amounting to Rs 121 crore, it said. The 3 persons - the creator of the fake firms, commission agent and the CA - were arrested on September 13 and remanded to 14 days judicial custody.
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