Man Arrested In Gujarat For Rs 177-Crore GST Fraud
The accused allegedly floated 66 fake companies to issue fake tax invoices.
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A Gujarat man was arrested for allegedly issuing fake invoices to claim input tax credit under the goods and services tax.
The man, identified as Ehsas Ali Saiyad, a resident of Vadodara, was the mastermind of a scam involving fake invoices to claim Rs 177.64-crore input tax credit, the office of the Central GST and Central Excise Commissionerate said in a statement. The 29-year-old allegedly floated 66 fake companies with as many dummy owners in whose name he issued tax invoices to claim input tax credit, it said.
Input credit is the benefit manufacturers get for the GST they pay on purchase of goods.
The accused obtained GST registration, GST identity cards, login-password, SIM cards, bank accounts and online passwords in the name of these dummy owners, said the commissionerate. “The accused would issue fake bills in the name of the entities created by him. He issued tax invoice of taxable value of Rs 1,210 crore to claim input tax credit of Rs 177.64 crore,” it said.
He was arrested under provisions of the CGST Act and further investigation was on, said the release.