GST Officials arrested a Businessman for GST fraud of Rs.10.14 crore

The Central GST arrested a businessman in Chhattisgarh’s Bilasput district for allegedly obtaining and using input tax credit (ITC) worth Rs 10.14 crore by generating fake invoices, an official said.

Officials from the Central GST apprehended Sanjay Shende on Friday under relevant sections of the Central Goods and Services Tax (CGST) Act, according to the official.

The authorities had obtained information that the companies Jyoti Trading & Company, Kliffo Trading Company, S S Industries, and Sai Enterprises were involved in large-scale GST evasion by obtaining and using fake ITC without receiving any underlying goods or services.

The premises of these enterprises were raided by officials from the fraudulent invoice and prosecution cell, CGST, and Central Excise Raipur, said Commissioner CGST Raipur Mohammed Abu Sama in a statement.

According to him, an investigation found that Bilaspur resident Shende, the proprietor of these firms, was reportedly involved in procuring fraudulent ITC.

According to the official, the accused obtained and utilised Rs.10.14 crore in ITC from 22 non-existent entities in New Delhi that issued bogus invoices without offering any products or services.

He claimed that these non-existent companies issued fake bills to the accused’s four businesses. As per statement, the accused utilised the money from the bogus ITC to pay his external GST duty.

Shende was brought before a Raipur court, which sentenced him to 14 days in judicial detention.