A major GST fraud has been uncovered in Meerut, India, involving fake firms and illegal input tax credits, resulting in significant financial losses and the arrest of one suspect.
Key Points
- Meerut police uncovered a GST fraud involving crores of rupees, leading to the arrest of one suspect.
- The fraud involved a network of fake firms created to illegally claim input tax credits (ITC).
- The estimated loss to the government exchequer is around Rs 3 crore, with potential for a higher total amount.
- The accused used fake Aadhaar and PAN details to establish shell companies and engage in circular trading to evade taxes.
- Police are actively searching for and working to arrest other individuals involved in the GST fraud racket.
The crime branch unit in Meerut has unearthed a Goods and Services Tax (GST) fraud involving crores of rupees and arrested one accused in connection with the case, police said on Wednesday.
The incident came to light during the investigation of a case registered at Ganganaagar police station.
During the probe, it was found that Pramod Kumar (56), a resident of Pratap Vihar Colony in Brahmpuri, along with his associate Sarvang Jain and others, had created a network of fake firms to carry out the fraud, the police said.
Details of the GST Fraud
According to officials, the accused availed input tax credit (ITC) illegally through fake invoices, causing an estimated loss of around Rs 3 crore to the government exchequer.
Preliminary investigation suggests that the total amount involved could be higher, they said.
The police said that despite multiple notices issued by the GST department, the accused failed to respond. Acting on technical evidence and location inputs, the main accused was arrested on March 31 near Saraswati Lok Colony.
Modus Operandi
Investigators revealed that the gang used fake Aadhaar and PAN details to set up shell companies and engaged in circular trading. They also allegedly underreported sales in GST returns to evade taxes.
The police said efforts are underway to trace and arrest the other accused involved in the racket.
