New Delhi: In the ongoing drive against availment of inadmissible ITC, officers of Central Goods and Services Tax (CGST) Commissionerate, Delhi East unearthed a multi-layered network of fictitious firms being used to generate and pass on fake ITC. Through the use of extensive data analytics, officers identified and searched 21 premises between January 15, 2021, and January 17 that led to the unravelling of a network of fake firms that were operating since 2017 to pass on fake ITC.
The network of fake firms was being operated by one Shri Arvind Kumar, who used to pass fake ITC for a commission of 4 to 4.5% of the invoice amount. The investigation conducted so far has revealed 46 firms to be fictitious which were being controlled by Shri Arvind Kumar and his associates. These firms had no business activity and had been created solely for the purpose of passing on fake ITC.
The total fake ITC quantified so far is Rs 82.23 crore generated out of the fake billing of Rs 541.13 crore which is expected to increase as the investigation progresses.
Shri Arvind Kumar was arrested under Section 69(1) of the CGST Act, 2017 and produced before the Duty Magistrate on January 17, who remanded him to judicial custody of 14 days till January 31.
Further investigation in the case is under progress.
Notably, since the inception of GST Central Tax, Delhi Zone has made 19 arrests in various cases involving GST evasion amounting of more than Rs 3766.69 crore.