Firm Director held by GST Department for GST Evasion

The Rangareddy GST Commissionerate officials apprehended a firm director in connection with a Rs.5 crore fake invoice fraud. Deem Distributors Private Limited, situated in the city, was accused of obtaining and exploiting fake input tax credits (ITC).

Sanjay Kumar Agarwal, the company’s director, revealed to GST officials that he had traded in invoices for a commission without actually receiving or supplying items. CGST officials investigated the existence of Deem Distributors’ suppliers in several commissionerates.

The investigation discovered that around 13 suppliers did not exist or were involved in the supply of bogus invoices without the supply of goods.

“On the basis of these forged invoices, Deem Distributors received ITC.” It then passed on the credit to various firms by issuing fake invoices,” claimed GST officials.