Businessman Arrested for Bogus ITC Claim Worth Rs.7 Crore

The GST department arrested a Pune-based businessman on Wednesday for allegedly filing bogus Input Tax Credit claims for Rs.7.38 crore on fake bills worth more than Rs.41 crore.

Pravin Gundecha, the businessman, is the owner of a private metals company.

The department discovered suspect business activities of more than Rs.41 crore of M/s Jirawala Metals while studying a group of recently registered taxpayers, according to officials.

Officials stated that on April 12, teams from the Maharashtra State GST, Pune inquiry visited the taxpayer’s company premises in Pune.

“During the investigation visit, it was discovered that this taxpayer’s suppliers had gained GST registration by supplying bogus papers such as power bills gathered from doorsteps and making leave and licence agreements without the knowledge of premise owners.” “This taxpayer obtained fake invoices of taxable value of 41 crore without getting any goods or services and hence obtained unlawful ITC of 7.38 crore,” noted the Maharashtra state GST statement.

According to the announcement, the state GST department has detained 10 people in various cases so far this fiscal year.

“The department will go to any length to apprehend criminals participating in fraudulent tax evasion rackets,” it stated.