DGGI Nagpur arrests person for GST tax fraud of Rs 3.5 crore

Nagpur, November 20

The zonal unit of Director General of GST Intelligence (DGGI) has arrested the proprietor of a local trading firm for fake transactions of over Rs 35 crore and availment of input tax credit of Rs 3.5 crore on fake invoices.

An official release stated that searches were conducted on Thursday by the officers of DGGI, Nagpur Zonal Unit, at the premises of a Nagpur-based trading firm dealing in paint, cement and iron and steel products.

The searches revealed that the trading firm was non- existent and a printing press was operating from the declared premises whose owner was not aware of any entity by the name and style of the said trading firm, the press release stated.

The proprietor of the trading firm was eventually traced and apprehended.

In the initial stages of interrogation, the proprietor denied having any relation with the trading firm.

Therefore, a detailed examination of the relevant documents was undertaken and the following details were found to tally, which conclusively proved that the apprehended person was actually the proprietor of the fake trading firm.

The total fraudulent ITC availed and passed on by this trading firm was computed as Rs 3.51 crore out of which ITC of Rs 2.75 crore, on further detailed examination, was found to have been availed on fake invoices issued by non-existent firms based in Chhattisgarh. —PTI

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