GST Department arrest Businessman for GST Fraud; Fraudulently Availed ITC worth Rs.12.59 crore

A 29-year-old city businessman was detained on Friday from Siddharth Nagar in Uttar Pradesh for allegedly obtaining Rs12.59 crore in input tax credit (ITC) on bogus bills of goods purchase of Rs 70.22 crore.

GST Evasion

Reetu | Mar 13, 2023 |

GST Department arrest Businessman for GST Fraud; Fraudulently Availed ITC worth Rs.12.59 crore

GST Department arrest Businessman for GST Fraud; Fraudulently Availed ITC worth Rs.12.59 crore

A 29-year-old city businessman was detained on Friday from Siddharth Nagar in Uttar Pradesh for allegedly obtaining Rs12.59 crore in input tax credit (ITC) on bogus bills of goods purchase of Rs 70.22 crore.

The Maharashtra GST department has arrested 68 tax evaders in 2022-23.

An interstate operation combining authorities from the state GST department’s Pune investigative branch and the UP police was carried out to apprehend the merchant, Sirajuddin Kamaluddin Chaudhary.

He was transported to Pune on a transit remand and appeared before a magisterial court on Sunday. The magistrate ordered Chaudhary’s remand in judicial prison for two weeks, according to a press release published by the office of the Joint Commissioner of State Tax Pune at GST Bhavan here.

According to the press release, “During the inquiry, it was discovered that four large suppliers are not real or legitimate because their GST registrations were obtained through fraud, using counterfeit documents. Several locations performed investigations into these suppliers’ cases, and it was discovered that Chaudhary had obtained bogus ITCs worth Rs12.59 crore for the company using fake bills totaling Rs. 70.22 crore.”

In the northern state, Chaudhary was running away and hiding. To find the offender, UP received a special investigative team (SIT) that was constituted.

On March 10, the team traced and apprehended the suspect with the assistance of the UP police. The Chief Judicial Magistrate of Siddharthnagar, UP, then granted him a transit remand, and he was sent to Pune as a result. The offender was sent to judicial custody for 14 days upon production before the Chief Judicial Magistrate of Pune, the statement continued.

The operation was conducted under the guidance of additional commissioner of state tax (Pune zone) Dhananjay Akhade, joint commissioner of state tax (Pune 2) Deepak Bhandare, and deputy commissioner of state tax Manisha Gopale-Bhoir; it was led by assistant commissioners of state tax Sachin Sangle, Dattatraya Telang, Satish Lanke and Satish Patil, along with state tax inspectors.

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