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Telangana: Two industrialists arrested in Rs 67-crore GST fraud

The investigators found out that the three accused industrialists created non-existent firms and issued fake invoices without actual supply of goods and facilitated fraudulent availing of the input tax credit by over 200 firms across the country

By: Express Web Desk | Hyderabad | January 7, 2021 12:24:56 pm
gst collections, gst collections at record highThe Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of GST. (Representational image)

The GST officials of Medchal commissionerate arrested two industrialists and their auditor in Hyderabad Wednesday for allegedly defrauding the government to the tune of Rs 67.76 crore.

The officials from the anti-evasion wing arrested industrialists Arjun Chowdary, Kiran Chowdary, and their auditor Vikas Saraf for issuing fake invoices by the creation of fictitious firms and evading GST. Another accused Gordhan Singh, also an industrialist is absconding, said an official press release.

The investigators found out that the three accused industrialists created non-existent firms and issued fake invoices without actual supply of goods and facilitated fraudulent availing of the input tax credit by over 200 firms across the country and thereby defrauding the government revenue to the tune of approximately Rs 67.76 crore.

The trio created around 11 bogus firms either in their names or in the name of different individuals by alluring them with monthly payments of meager amounts. These companies were registered in the names of these persons and Vikas Saraf, an auditor, helped them obtain multiple GST registrations. He arranged for input bills from bogus firms, maintained all records such as purchase invoices, accounts, filing of I-T returns, and GST returns by keeping IDs and passwords under his control, the release added.

It was also found that the fake invoice trading took place against payment of 9 to 10 percent commission in cash. The recipient firms of fake invoices were paying the amounts through regular banking channels by way of RTGS/cheques to the bogus firms who have issued fake bills and the amounts were being paid back to them by withdrawing cash from their account by deducting their commission.

After their arrest Wednesday, they were remanded to 14 days judicial custody by a special court for Economic Offences. Further investigation and recovery proceedings are underway while efforts are on to nab the absconding Gordhan Singh.

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