The Central Goods and Services Tax (CGST) officers have uncovered a network of fake companies used by their regulators to produce and distribute fraudulent Input Tax Credit (ITC) of Goods and Services Tax (GST).
How did he carry out his fraudulent activity?
Vishal, an advocate by profession who practised law in Delhi's Karkardooma Case, was the mastermind behind the fake firm network. Vishal began his GST fraud by creating a fictitious company in his own name and registering it at his house.
What was uncovered during the raid?
During the search of his house, KYCs and cheques were resumed. In return for a 2% commission on the invoice number, he used to pass on fake Input Tax Credit to his clients. The total amount of fake Input Tax Credit passed on so far has been estimated at Rs. 50.03 crore, with the amount expected to grow as the investigation continues.
After the introduction of the GST Central Tax, the Delhi Region has made 27 arrests in different cases involving GST evasion totalling more than Rs. 4019.95 crore.
Vishal, a lawyer, masterminded a deep criminal scheme to defraud the government and deliberately committed offences that are cognizable and non-bailable under the act.