A 25 year old CA Final student Prince Manish Kumar Khatri, who hails from Ahmedabad has been arrested for floating large number of fake firms, creating Fake Invoices therefrom to generate fake Input Tax Credit amounting to Rs.50.24 Crores.
The officers of CGST, Vadodara-II Commissionerate of Vadodara Zone, after the intensive data mining and data analysis of the suspicious taxpayers, particularly relating to data of E-way Bills, GSTR-3B and GSTR-1, detected that Mr Khatri had floated more than 115 fake firms by using the IDs of villagers of Dahod and other areas located in Ahmedabad.
This fake illegal credit was eventually passed on in chain to other fake identities by issuing fake invoices and without actual supply of goods and services.
The intensive interrogation of the person and after confronting him with the records and the identities, this accused is reported to have admitted that he generated fake credit of more than Rs. 50 Crores by creating the fake firms on the identities of villagers and labourers, etc. hailing from Ahmedabad and Dahod, promising them for making monthly payment in cash.
The CGST officers arrested Mr Khatri under Section 69 of the CGST Act, 2017 on 16th October, 2020, as he had committed an offence under Section 132(1)(b) of the CGST Act, 2017.
It may be noted here that Section 132 of CGST Act, 2017 prescribes that such person could be sentenced to jail upto 5 years with fine for the said alleged offence.
After the arrest, the said CA student was examined at SSG Hospital, Vadodara and then produced before the Chief Judicial Magistrate, Vadodara, who has remanded him for the judicial custody. Further investigations are stated to be in progress.
It is worth mentioning here that in past the Deptt. has unearthed several such GST evasions and the move of Government towards GST e-invoicing is in order to obviate possibility of such frauds.
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