GST scam mastermind nabbed in Ludhiana

Ruchika M Khanna

Tribune News Service

Chandigarh, March 10 

The man behind the multi-crore fake GST bills scam, Manish Aggarwal, a small-time accountant, has been nabbed by the Ludhiana police. The accused also had a role in the VAT refund scam in Mandi Gobindgarh and Ludhiana two years ago. 

He has been booked for cheating, fraud and criminal conspiracy as well as under the Goods and Services Act. 

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According to the police, Aggarwal worked hand in glove with a clerk (under suspension) in the Excise and Taxation Department, Rajiv Kumar, who is yet to be traced. “They set up fake firms, registered these under GST and purchased bills from small retailers which they sold to exporters and large manufacturers in Ludhiana and Mandi Gobindgarh,” SHO Jatinder Singh told The Tribune.  

The firms bought GST bills at 2-7 per cent of the GST levy on goods sold  from retailers. They then sold these bills at 5-14 per cent to exporters and large manufacturers, who took input tax credit by submitting these bills while there was no actual sale/export of goods. Aggarwal was tracked through the IP address of a computer used by him to register a company.