The office of the Commissioner Goods and Service Tax and Central Excise, New Delhi has arrested one Mr. Arvind Kumar for operating fake firms to pass on fake Income Tax Credit (ITC).
The department, through extensive data analytics, identified and searched 21 premises in the past 3 days revealing a network of fake firms operated since 2017. So far 46 firms run by Mr. Aravind and his associates has been unearthed which had no business activity and was created solely for the purpose of passing on fake ITC for a commission of 4 to 4.5% of the invoice amount. As of now, the total fake ITC quantified is at Rs. 82.23 Crores generated out of the fake billing to the tune of Rs. 541.13 Crores. He was arrested under section 69(1) of the CGST Act, 2017 and is remanded to judicial custody until January 31st this year.
According to a statement released by CGST, since the inception of GST Central Tax, Delhi Zone has made 19 arrests so far in various cases involving GST evasion amounting of more than 3766.69 Crores.
