GST Evasion of Rs.176 crores by creating a Fake Company; Mastermind Arrested

A 34-year-old man has been arrested for doing a tax scam of Rs.176 crore by creating fake companies in the name of the poor. He was on the verge of leaving the country.

According to the Directorate General of GST Intelligence, he used to acquire Aadhaar and PAN details from underprivileged people while offering them favourable loans. Following that, he used to commit tax evasion by forming a fake company under his name.

A GST Intelligence official said, several companies were linked to the mastermind. He created fake receipts on taxable value of Rs.973.64 crore. Earlier on June 22, a person associated with this racket was arrested. After this he gave the information of the mastermind.

Officials stated, these criminals were quite sophisticated and used to make calls from foreign SIM cards using foreign access software. Intelligence tracked and then raided different locations to find out about WhatsApp chats.

The unit says that 25 bank accounts linked to this mastermind have been frozen. 20 GST registrations have been cancelled. Apart from this, mobile phones, modems, laptops and SIM cards have been seized.

Since the launch of GST in July 2017, around three lakh crore rupees in tax has been evaded through fraudulent techniques. According to the information, tax evasion totaled one lakh crore rupees in the previous financial year. About 14,000 cases of tax evasion were registered in this financial year.