GST Evasion: DGGI Gurugram unearth ITC Fraud of Rs.52.04 Crore

The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), has arrested one person under the provisions of the GST Act on charges of fraudulently availing Input Tax Credit worth Rs.52 Crore on the strength of goods-less invoices.

The DGGI Gurugram Zonal Unit’s officers gathered information that M/s AKS Electrical and Electronics Ltd., with offices at S-1 and S-15, Bulandshahar Road, Industrial Area, Ghaziabad, Uttar Pradesh, was involved in the acquisition and issuance of phony/Fake ITCs without the underpinning supply of goods. Additionally, it was discovered that they had made sizable purchases from M/s Abhishek Industries in a particular year. This company is the subject of an inquiry by this office into possible ITC fraud involving numerous fictitious businesses.

According to the verified facts, evidence, and statements that were written down, M/s AKS Electrical and Electronics Ltd., Ghaziabad, appeared to have been involved in the illegal use of input tax credits by relying on invoices for goods that weren’t actually supplied by other companies, including M/s Abhishek Industries. At first glance, M/s AKS Electrical and Electronics Ltd. appears to have received more than Rs 52 crore in the form of such ineligible ITC.

A 14-day court remand was obtained following the arrest of M/s AKS Electrical and Electronics Ltd.’s director on July 6, 2022.