This consists of the case of Sunil Gutte, son of a Maharashtra MLA who is accused of fake invoice scam worth Rs 520 crore.
The Directorate General of GST Intelligence (DGGI) has arrested 104 persons in connection with 1,161 circumstances of tax credit fraud, in a 3-week nationwide drive, official sources mentioned. As numerous as 3479 ‘fake’ entities with GST registration have been unearthed for the duration of the drive.
Apart from the quantity of situations, the enormity of the fraud can also be gauged from the truth that, one particular individual with political connections who was arrested in Maharashtra for a Rs 520-crore scam, was denied bail by the court, in spite of strong legal help, the sources added.
Given the acute income constraints, the GST authorities are leaving no stone unturned to frustrate fraudulent components in the method. Undue outflow of input tax credit is one particular of the significant motives for income leakage.
On Friday alone, 8 arrests have been produced in 65 circumstances regarding 114 fake entities. These fly-by-evening firms have been involved in circular trading, whereby fake invoices have been generated for various providers, normally owned by the very same entity, devoid of any actual provide of goods or solutions.
During this drive, the DGGI performed searches and surveys in more than 38 cities like metros. “Further investigations are in progress to unravel the network and multiple chains of fake invoices benefactors to ascertain the exact amount of tax evasion,” an official supply mentioned.
Further, sources mentioned that some of the arrested kingpins have been denied bail by the courts in spite of engaging senior lawyers. This consists of the case of Sunil Gutte, son of a Maharashtra MLA who is accused of fake invoice scam worth Rs 520 crore.