GST Official Arrest 5 Person for Operating 550 Fake Firms for GST fraud

GST Officials have been arrested five people for allegedly operating 550 phoney firms from a room in Gujarat’s Surat city to commit Input Tax Credit fraud worth several crore rupees under the GST system, officials said in Indore, Madhya Pradesh, on Monday.

The five were apprehended from Surat on May 25 by the Indore-based Central Goods and Services Tax Commissionerate with the assistance of the Madhya Pradesh Cyber Cell, according to an official.

“The five have demonstrated a business of 800 crore through 550 phoney companies, all of which existed solely on paper in order to fraudulently get ITC worth 100 crore, which was subsequently purchased by other enterprises for commission,” he said.

“The room in Surat where these 550 enterprises were working only had four to five tables and seats, and could only accommodate six individuals at a time.

The accused used unlawfully obtained identity documents from Gujarat, Maharashtra, and Madhya Pradesh to register these organisations with the Goods and Services Tax network “the official continued.

He claimed that the accused utilised the names of regular bettors and even the retired MP director general of police to set up sham companies. He also revealed that one of the people who was used died seven years ago. According to the official, they confiscated incriminating documents, mobile phones, SIM cards, seals, and letter pads from the suspects. We expect that as the investigation continues, the financial scope of the irregularity will expand.