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Fake GST invoices racket busted, private company MD arrested by CGST Commissionerate

The accused has been identified as Sanjay Sheshrao Gaikwad, who was arrested on March 16 under sections of 132 (1) (b) and (c) of the CGST Act, 2017. He was later remanded in judicial custody for 14 days by a court in Pune.

By: Express News Service | Pune |
March 18, 2021 10:12:48 am
Fake GST invoices racket busted, private company MD arrested by CGST CommissionerateThe CGST commissionerate officials have busted the company's modus operandi of issuing fake GST invoices without receipt or supplying any services. (Representational Image)

The Commissionerate of Central Goods and Services Tax (CGST), Pune II, has arrested a managing director (MD) of a private company in connection with an alleged racket of issuing fake GST invoices without receipt or supply of services.

The accused has been identified as Sanjay Sheshrao Gaikwad, who was arrested on March 16 under sections of 132 (1) (b) and (c) of the CGST Act, 2017. He was later remanded in judicial custody for 14 days by a court in Pune.

Gaikwad is MD of “M/s Sigma Techinfra Solutions Private Limited”, which is registered in GST for supplying manpower. The CGST commissionerate officials have busted the company’s modus operandi of issuing fake GST invoices without receipt or supplying any services.

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“Investigation was initiated against the said company for issuance of fake GST invoices of approximately Rs 66 crores including GST of RS 12 crores to facilitate bogus input tax credit (ITC) claims and dupe the government exchequer. The accused is a part of racket involving issuing fake GST invoices to claim fraudulent ITC from the government without any receipt or supply of services,” a statement from the CGST Commissionerate said.

“As per GST laws, ITC can be availed only against taxes paid to the government on receipt of goods or services. However, M/s Sigma Techinfra Solutions Private Limited took work orders from various prominent companies and sub contracted the same work to non-existent companies (that exist only on paper) and thus availed ITC on bogus invoices and passed on the same to prominent companies without actual receipt or supply of services. Search was conducted at different premises of the company in Pune and Mumbai. The statement of the accused was also recorded who has admitted to this modus operandi,” the statement said.

“Further investigation in the matter regarding involvement of other firms and financial transactions between these firms are in progress,” it said.

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