The Chennai Outer Commissionerate has arrested a scrap dealer from Vellore and two others for committing GST credit fraud by issuing fake invoices to the extent of ₹ 423.2 crore and passing an illegal and illegal input tax credit of about ₹ 58 crore. The case against the arrested persons is that they have taken GST registration by misusing KYC documents of some individuals along with others.
44 fictitious firms
According to an official statement, the mastermind of the alleged fraud has run 44 fake companies, using KYC documents.
Out of 44, 24 companies were operated by the mastermind for issuing fake invoices, while the remaining 20 companies have been sold to other individuals, who are operating in the same way of issuing fake invoices and thus fake inputs. Passing on credit, it added.
In addition, 56 fictitious companies were created and operated by others, for whom the mastermind worked as a commission agent to provide customers interested in purchasing fake invoices without any actual supply of goods or services.
The three persons have been sent to judicial custody.
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