A 50-year-old man from Nerul, Navi Mumbai, has been arrested by the anti-evasion cell of the Central GST Belapur Commissionerate for his alleged role in a Rs 147 crore GST invoice scam.
The accused, who has not been named yet, is said to be the de facto director of three companies – Dhruvika Chemicals Trading Pvt Ltd, Nicolasa Trading Pvt Ltd, and J B Dyechem Pvt Ltd. These companies were used to generate fake invoices without any underlying supply of goods. The fake invoices were then used to claim input tax credit (ITC) from the government.
The total taxable value of the fake invoices is Rs 817 crore. The accused has been remanded to judicial custody till August 31. Further investigation is underway and more arrests are likely.
The GST invoice scam is a serious crime that can have a significant impact on the government’s revenue. It is important to crack down on such scams and bring the perpetrators to justice.
Here are some of the modus operandi used by the accused in this scam
- They used dummy directors and staffers to set up shell companies.
- They generated fake invoices without any underlying supply of goods.
- They used the fake invoices to claim input tax credit from the government.
- They inflated their turnover to avail bank loans.