Delhi-based businessman arrested for Rs 128 cr GST-related fraud

Chandigarh, July 25

A Delhi-based businessman here has been arrested for an alleged Rs 128 crore GST-related fraud, a senior official said on Sunday.

Investigations conducted by the officials of the Chandigarh zonal unit of the Directorate General of GST (Goods and Services Tax) Intelligence (DGGI) revealed that the accused was allegedly involved in issuing invoices without actually procuring goods and thus passing on input tax credit (ITC) to various beneficiaries at several places, including Delhi and Chandigarh.

ITC means that a businessman can reduce taxes already paid on the input while paying tax on the output.

The accused had set up six firms with an intention of passing on the fake ITC to multiple beneficiaries, the official of the Chandigarh zonal unit of the DGGI said.

He said the accused had passed on fraudulent ITC worth Rs 128 crore.

The GST officials also conducted searches at the business premises and residential places of the accused in Delhi and Himachal Pradesh, he said.

Raids were also carried out at the premises of some of the suppliers, the official added.

Investigation further revealed that the items, which were shown as sales, were never bought and similarly some items, which were shown as purchases, were never sold by the firms.

The vehicles, which were shown for transporting the goods, were found to be operating in some other parts of the country.

The accused was into the business of readymade garments, chemicals, cigarettes, among other things. PTI