New Delhi, July 11 (MNN) Central Goods and Service Tax (CGST) Commissionerate officials have unearthed a racket involving 23 firms that availed of and passed on inadmissible input tax credit (ITC) through goods-less invoices of around Rs 91 crore. Three persons have been arrested in the case.
The modus operandi involved floating of multiple firms with the intent to avail/utilise and pass on the inadmissible credit.
The firms involved in this network are M/s Girdhar Enterprises, M/s Arun Sales, M/s Akshay Traders, M/s Shree Padmavati Enterprises and 19 others, the government said.
The government said Dinesh Gupta (since deceased), Shubham Gupta, Vinod Jain and Yogesh Goel were associated in the said business of generating/selling fake invoices.
These entities were dealing in various commodities and involved in generation of goods-less invoices of Rs 551 crore and passing inadmissible ITC amounting to around Rs 91crore.
All the three accused tendered voluntary statements to admit to their guilt.
Since they knowingly committed offences under Section 132(1)(b) and 132(1)(c) of the CGST Act, 2017, which are cognizable and non-bailable offences as per the provisions of Section 132(5) and are punishable under Clause (i) of the Sub-Section (1) of Section 132 of the Act, they were arrested on July 10, 2021 and remanded to judicial custody by the duty Metropolitan Magistrate for 14 days. Further Investigations are in progress.