GST officers arrest 3 persons for running fake firms, evading Rs 48 cr GST

New Delhi: GST officers have arrested three persons for running fake firms and evading GST of over Rs 48 crore, the Finance Ministry said on Wednesday.

The Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) has arrested three persons under the provisions of the GST Act on charges of running multiple fake firms on the strength of fake documents in two different cases.

Two persons were arrested from Delhi on October 5 and 9, on charges of orchestrating a fake billing racket involving more than 20 fake firms, where more than Rs 22 crore of the fraudulent input tax credit was taken. Both persons were arrested and produced before CMM, Delhi, and were subsequently sent to 14-day Judicial Custody.

In another case of fake billing, a Haryana resident was arrested. He was found to be in possession of a huge cache of incriminating documents like fake stamps of Government Departments, cheque books and ATMs of multiple fake firms, toll receipt books, fictitious transporters booklets, etc. The same were being used to show evidence of fake supply of goods on which fake input tax credit was generated and passed on through these slew of fake firms.

Based on the evidence, the person was arrested on October 23, 2021, under the provisions of the GST Act on charges of defrauding the Government of more than Rs 26 crore of GST. The arrested person has been sent to 14-day judicial custody, the Ministry added.