3 Businessmen arrested in GST Fraud for Fraudulently claiming ITC through Fake Companies

The CGST Palghar commissionerate discovered a huge bogus Input Tax Credit (ITC) racket, resulting in the arrest of three individuals.

3 Arrested in GST Fraud for Fraudulently claiming ITC

Reetu | Sep 14, 2024 |

3 Businessmen arrested in GST Fraud for Fraudulently claiming ITC through Fake Companies

3 Businessmen arrested in GST Fraud for Fraudulently claiming ITC through Fake Companies

The CGST Palghar commissionerate discovered a huge bogus Input Tax Credit (ITC) racket, resulting in the arrest of three individuals. The investigation uncovered fraudulent transactions of Rs. 59.11 crore involving eight non-existent entities, including the principal entity M/s H&D Company, situated in Palghar, Maharashtra.

This investigation was prompted by information received during the second All India Drive against fake registrations.

Chirag Ashok Raval, along with accomplices Swaraj Prafullchandra Dave and Parth Jitender Raval, planned the scam by registering fake companies in the names of family members.

These companies issued fraudulent invoices in order to claim ITC despite the fact that no genuine goods or services were supplied, in violation of GST legislation. The suspects received ITC worth Rs. 29.53 crore and transferred Rs. 29.58 crore through illegal activities.

They were arrested under Section 69 of the CGST Act, 2017, for violating Sections 132(1)(b) and (c), and are under judicial custody until September 25th, 2024.

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"




Author Bio
My Recent Articles
Owners of Houseboats asked to pay GST@18% beginning in 2017 DGGI detected GST Evasion worth Rs.2.01 Lakh Crore during FY 2023-24 GSK Pharmaceuticals slapped with GST Demand Order of Rs.1.07 Crore from Telangana Commissioner GHCL Limited gets Notice for excess Claim of ITC from GST Department Advance Tax Payment: Pay 2nd Installment of Advance Tax by 15th September to avoid Penalties View All Posts