Officers from the CGST Delhi North Commissionerate have arrested one individual for an estimated Rs 94 crore in input tax credit fraud. Following data analysis and intelligence collection, officers from the CGST Delhi North Commissionerate zeroed in on Shri Krishan Kumar, who was involved in developing and running fake firms using the identity documents of his friends/employees.
According to the investigation so far, he set up five fake companies, including M/s Shradha Merchants, M/s Anshara Impex, M/s Vijeta Enterprises, M/s SM Agencies, and M/s Deepasha Sales, to issue goods-less invoices for products including butter, ghee, and oil, and pass on inadmissible Input Tax Credit (ITC) of Rs. 94 crore.
Incriminating documents such as ATM cards, signed cheques, bank documents, stamps of these dummy firms, including the stamp of the transport company as stated in the e-way bills of the fake firms, and outer packets/cases of SIM cards of mobile phones used for firm registration were discovered during the search of his residence.
In a similar rais, officers from the Anti-Evasion division of the Central Goods and Service Tax (CGST) Commissionerate, Delhi (West), have discovered a case of inadmissible input tax credit (ITC) availment/utilization and passing on by goods fewer invoices totalling Rs 9 crore, based on unique intelligence (approx).
The operation entailed the formation of several companies with the aim of obtaining/utilizing and passing on inadmissible credit. M/s Ishita Ispat and M/s H. M. Trading Company are the primary beneficiaries in this network, with Sh. Naveen Bansal as the proprietor and de facto operator for the other two companies, as he admitted on record. These companies trade in metal scrap and are active in obtaining inadmissible ITC by falsifying invoices. Sh. Naveen Bansal voluntarily admitted his guilt in a letter.
The Delhi Zone has been working hard to combat GST evasion, resulting in the discovery of Rs. 5,319.6 crore in the current fiscal year and the arrest of 41 people.