GST Evasion: 50 Year Old Man arrested for Rs.147 Crore GST Invoice Scam

A 50 year old man from Nerul was arrested by the Central GST Belapur Commissionerate’s anti-evasion unit for his suspected participation in the trading of bills without the underlying supply of goods among a number of enterprises employing dummy directors and personnel on Friday.

The unnamed accused is believed to be the de facto director of three companies: Dhruvika Chemicals Trading Pvt Ltd, Nicolasa Trading Pvt Ltd, and J B Dyechem Pvt Ltd. These businesses were utilised to create bogus invoices with no underlying supply of goods. The fake invoices were subsequently utilised to claim ITC from the government.

This resulted in the detection of Rs.147 crore in input tax credit, but no recovery was effected. The taxable value is Rs.817 crore in total. The ineligible ITC inside the bogus firms was formed to inflate turnover in order to get bank loans.

According to a CGST officer, “the companies were engaging in illegal transactions until March 2022. A Belapur court has ordered the accused to judicial prison till August 31.”