Directorate general of GST intelligence (DGGI) have arrested two people in connection with issuance of bogus GST invoices and resultant benefiting of ineligible GST input tax credit (ITC) in the plywood industry at Perumbavoor.
The arrested are Gopakumar A R (49) and Rasheed K E (37). They were arrested under Section 69 of the CGST Act 2017. Additional chief judicial magistrate (economic offences) remanded them into judicial custody for 11 days on Friday.
According to sources, DGGI officers of Thiruvananthapuram, Kochi and Coimbatore had conducted simultaneous search operations at various premises at Perumbavoor and Coimbatore on March 24 and recovered invoices generated in the name of fictitious firms floated by the members of the racket.
“Preliminary investigation reveals that the racketeers issued fake invoices valued around Rs 200 crore to various GST registrations and thereby passed on fake ITC amounting to approximately Rs 35 crore,” DGGI said in a statement.
“It is identified in the course of investigation that Gopakumar and Rasheed were operating two separate rackets in alliance with each other by availing fake ITC on the basis of sham invoices without receipt of any goods,” stated the release.
The agency said that there were 14 GST registrations involved with the racket and most of the entities were found to be taken in the name of labourers and name lenders. The investigation team included senior intelligence officers Balagopal G and Hareendran K and intelligence officers Jijo Francis and Vaishakhan V S. The department has also initiated measures to recover GST ITC from the plywood manufacturers who have availed fake ITC.
Also Read: FAQs , Ready reckoner on e-invoicing & Advisory on auto-population in GSTR-1 issued
Source: timesofindia.com
Follow us for free tax updates : facebook Twitter
***
Subscribe our portal and get FREE Tax e-books , quality articles and updates on your e-mail.
Resolve your GST queries from national level experts on GST free of cost.
TW Editorial Team comprises of team of experienced Chartered Accountants and Advocates devoted to spread the knowledge of GST amongst the various stakeholders.
