27-year-old accountant arrested for ‘issuing bogus bills worth over Rs 1,000 crore’

“It is suspected that he (accountant) is a part of a bigger network which lures innocent people to obtain GST registrations and then steals the identity. This stolen identity is used for generating, availing and passing on of fake ITCs without actual supply or receipt of goods or services. All efforts are being made to identify and nab the kingpin and other members and beneficiaries of this network,” said the GST department in a statement.

Adhagale earlier worked with Mc Donald’s, quit his job in 2019 and became a freelance GST registration consultant.

Adhagale, who has studied till standard 12, used to help small firms get GST registration for a commission. The tax authority has now found that once the registration was done, Adhagale used the GST registration and login of these companies on the GST portal for issuing fake bills without their knowledge.

He was arrested under Section 69 of the CGST Act, 2017 for violations punishable under Section 132 of the CGST Act, 2017, said the tax authority. A local court has remanded him to judicial custody till February 8.

According to sources, the department has tracked down a few other companies that were used by Adhagale to allegedly perpetrate the ITC fraud. “The total amount of fraud may go up as the department is still probing a few other companies used by Adhagale for issuing bogus bills and claiming ITC,” said a source.
The GST department added that its Palghar office has so far detected tax evasion of Rs 460 crore, recovered Rs 12 crore and arrested two persons in separate cases in the last few months.