CGST Officials arrest one Person for availing fraudulently ITC of Rs 50 crore

The CGST Delhi West Commissionerate has launched a probe against M/s Niyati Steels as a result of a warning. In his voluntary comments, one Shri Karan Kumar Aggarwal acknowledged that he is in charge of the stated firm’s daily activities and operations. The aforementioned company received ITC of Rs 7.7 crore from nonexistent organizations.

Six more businesses were connected to Shri Karan Kumar Agarwal, it was discovered through additional research and the use of analytical technologies. These companies obtained a total of more than Rs. 52 crores in invalid or illegal input tax credits (ITC) from nonexistent corporations based on goods-less invoices totaling around Rs. 292 crores. In his voluntary statement, Shri Karan Kumar Agarwal acknowledged using his Aadhar for authentication in all 6 of these businesses, issuing goods-less invoices in some of these businesses despite not receiving any goods, and selling goods-less invoices for a commission of 3 to 4% of the taxable value of the invoices.

Karan Kumar Agarwal was arrested for offenses under section 132 of the CGST Act, 2017, read with section 69 of the same Act, and remanded to judicial custody by the Ld. ACMM Court for 14 days. This was done in light of Karan Kumar Agarwal’s own admission of his involvement in the use of ineligible/inadmissible ITC and substantiated by data analytics.

Further investigation is under progress.