New Delhi: The nationwide drive against the use of fake GST bills to fraudulently claim the input tax credit (ITC) is turning out to be a nightmare against the errant chartered accountants who have been involved with fake GST dealers in evasion of taxes. With the arrest of two more chartered accountants early this month, the total number of CAs arrested by GST Intelligence Officials have gone up to 12, ETV Bharat has learnt.
Read: GST collection in February records 7% YoY growth
The officials of Directorate General of GST Intelligence (DGGI) and CGST Commissionerates have so far arrested more than 350 offenders, including a dozen chartered accountants and one company secretary (CS), and several masterminds in the four-month long ongoing drive against the use of fake GST invoices.
“CGST Delhi Zone arrested a CA Devender Kumar Goyal along with the mastermind Naresh Dhondhiyal of Vertilink Media Solutions Pvt Ltd while another CA Vishal Ahuja was arrested by CGST Mumbai Zone for running fake invoice racket,” a source in the department of revenue told ETV Bharat.
According to officials, tax authorities have so far booked about 3,500 cases against 10,400 bogus entities having GST registration.
Out of the total 357 persons arrested so far, at least four persons have been booked under the provisions of stringent COFEPOSA (Conservation of Foreign Exchange and Prevention of Smuggling Activities Act).
Read: Fake GST Bills: In a big crackdown tax officers arrest 12 persons, including a CA
The authorities, also, have recovered around Rs 1,125 crore from these fraudsters.
Crackdown leads to buoyancy in GST collection
The ongoing drive, which started before Deepawali last year also resulted in a record increase in the GST collection during the last five months. The GST collection has been over Rs 1 lakh crore during the last five months and it has been above Rs 1.1 lakh during three of the five months, which is a record.
Tax official credit the use of artificial intelligence, data analytics, machine learning, and above all data sharing between different law enforcement agencies, including both direct tax and indirect tax authorities that helped them create a 360 degree profile of tax evaders.
A source said now tax authorities can identify layer-by-layer activities of these fake entities and their networking to pinpoint the fraudsters with specific inputs.
Read: 15th instalment of Rs 6K cr for GST compensation shortfall released
According to the sources, out of the 357 offenders arrested so far there are 141 masterminds, 122 proprietors, 49 directors and managing directors and 20 partners.
The offenders who have been arrested also include five CEOs, CFOs and CMDs, 12 chartered accountants, 4 accountants and one each of company secretary, advocate, broker, and GST practitioner.
