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Officials of the Central GST Delhi Oriental Commission arrested 3 people for floating 17 fake companies and issuing fake invoices

twitter-logo PTI Last updated: March 2020 2 Ri 22:20 IST

GST officials arrested three people suspected of floating 17 fake companies and incorrectly used an input tax worth Rs. 4.36 crore by issuing fake invoices.

An official merchandise statement stated that officials at the Central GST Delhi Eastern Commission found that the input tax credits fraudulently used by these companies were used to request refunds, totalling Rs 1,155 crore.

A statement issued by CGST Delhi East said: "During the investigation, the defendant was found to be indulging (under investigation) with certain bank employees in a significant Havala operation.

During the investigation, it was found that these 17 companies existed only on paper and were floating due to the transfer of input tax credits due to the generation of false invoices. Three defendants-Asif Khan, Rajeev Chhatwal and Arjun Sharma were arrested on March 1 and remanded to 3 Judicial detention on 13th.

The three individuals operated 17 fake companies, purchased invoices actually supplying the goods, and fraudulently used and passed on the input tax amounting to Rs 436 crore.

The defendant is related and is evading investigations over the past month.

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