Fake GST Bill: Tax officials nab Delhi businessman for Rs 94 crore tax fraud

A Delhi businessman Krishan Kumar who was involved in creating and operating bogus firms by using identification documents of his friends and employees was arrested by GST intelligence officials. Tax sleuths used sophisticated tools such as data analytics and machine learning to zero-in on the accused and arrested him on Thursday, reports ETV Bharat's Deputy News Editor Krishnanand Tripathi.

New Delhi:In the ongoing nationwide crackdown against the use of fake GST bills to evade taxes, GST intelligence officials from CGST Delhi North Commissionerate Thursday arrested a Delhi businessman Krishan Kumar who was involved in creating and operating bogus firms by using identification documents of his friends and employees.

Tax sleuths used sophisticated tools such as data analytics and machine learning to zero-in on the accused and arrested him on Thursday.

The accused, who was presented before a competent court in Delhi, has been remanded to 14 days of judicial custody, said the officials.

“As per investigation conducted so far, a total of 5 fake firms Shradha Traders, Anshara Impex, Vijeta Enterprises, SM Agencies and Deepasha Sales were created by him,” said officials.

Officials in the ministry of finance said the accused businessman was using these bogus firms for issuing fake GST bills related to the trade of butter, ghee and oil without an actual supply of goods.

“The accused passed on inadmissible Input Tax Credit (ITC) of Rs. 94 crore approximately,” said officials in the ministry of finance.

Officials said incriminating documents like ATM cards, signed cheques, bank documents, stamps of these dummy firms were recovered from his residence during the search.

According to officials, the recovered material also included a stamp of a transport company as mentioned in the e-way bills of the fake firms and outer packets and cases of SIM cards of mobile phones used for registration of firms were also recovered.

Officials said Krishan Kumar committed an offence specified under Section 132(1)(b) of the CGST Act, 2017 and he was arrested under the provisions of Section 69(1) of the Act and produced before a court that sent him to two weeks judicial custody.

More than 350 arrested in crackdown

In order to plug the revenue leakage in the GST regime, the GST Intelligence officials (DGGI) and officials at the Commissionerate level launched a nationwide crackdown against the use of fake GST bills in November last year.

Tax officials have so far arrested over 360 people, including a dozen chartered accountants (CAs), one company secretary (CS) and several masterminds, including a lady mastermind from Chennai, who were involved in large scale tax evasion by fraudulently availing and passing on ineligible input tax credit (ITC) that was introduced in the GST to avoid cascading of taxes in the new tax regime.

Tax officials have so far booked more than 3,500 cases against more than 10,500 bogus firms and recovered more than Rs 1,125 crores from these offenders.

40 fake GST dealers arrested by Delhi GST

As part of the nationwide crackdown, officials of CGST Delhi Zone have arrested 40 offenders in the current financial year and detected the tax fraud of over Rs 5,300 crores.