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Mumbai: DGGI arrests four in Rs 408 crore GST fraud

The DGGI arrested the director of Range Megastructures Private Ltd, the proprietor of ACS Hardware and Networking, the promoter of Keshariya Metal Pvt Ltd and the director of Shailaja Commercial Trade Frenzy Ltd.

Written by Khushboo Narayan | Mumbai | November 12, 2020 12:07:54 am
NIA arrests Karnataka man accused of West Bengal LeT recruitment casePolice have identified the accused as Rohit Aaru. (Representational Image)

The Directorate General of Goods and Services Tax Intelligence (DGGI) in Mumbai on November 10 arrested four persons in three separate cases for availing “fictitious” input tax credit (ITC) of Rs 408.67 crore using fake invoices without any actual supply of goods or services.

The DGGI arrested the director of Range Megastructures Private Ltd, the proprietor of ACS Hardware and Networking, the promoter of Keshariya Metal Pvt Ltd and the director of Shailaja Commercial Trade Frenzy Ltd. They have been booked under Section 69 (1) of the Central Goods and Services Act, 2017 for issuing bogus invoices for wrongfully availing ITC without any supply of goods or services.

According to the agency, ACS Hardware and Networking had fraudulently claimed ITC of Rs 85.38 crore without any supply of goods and further passed the same amount to Range Megastructures on the basis of “invoices having taxable value of Rs 474 crore without any supply of goods”. The probe has found that Rane Megastructures further passed on ITC of Rs 85.44 crore to another company.

“In this cartel bogus ITC has been passed on in a linear manner in which the ultimate beneficiary has availed and utilised ITC either for payment of their output tax liability or taking refund of unutilised ITC,” said Seema Jere Bisht, principal additional director general of DGGI, Mumbai.

Earlier the agency had arrested a few members of this alleged cartel.

In a separate case, the DGGI has alleged that Keshariya Metal and four other companies colluded to create fake invoices and have availed and passed on ITC of about Rs 103 crore.

In case of Shailaja Commercial Trade, the DGGI found that the company issued and received bogus invoices and fraudulently availed ITC of over Rs 48 crore. The agency has alleged that the company showed bogus supply of goods to “inflate” its turnover.

The four accused have been remanded to judicial custody till November 24.

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