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Delhi duo cheat tax authorities by claiming Rs 127 cr GST refund; arrested

Haryana tax authorities have arrested two Delhi-based persons for fradulently claiming crores in input tax credit on GST. The duo generating fake invoices in order to cheat GST authorities.

India TV News Desk India TV News Desk
New Delhi Updated on: October 09, 2019 19:00 IST
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Image Source : MANISH PRASAD

Representational Image

Two persons from Delhi have cheated tax authorities by claiming GST refund of Rs 127 crore. Both of them, who generated fake invoices and fraudulently availed input tax credit, were arrested by the Haryana GST authorities. 

The arrests were made by the Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit (GZU), Haryana.

The accused persons, Gulshan Dhingra and Sanjay Dhingra, were arrested on October 7 under various sections of the Central Goods and Services Tax Act (CGST), 2017 for "causing loss to exchequer by evasion of GST", the finance ministry said in a statement on Wednesday.

The accused were sent to judicial custody till October 19 by a Gurugram court, it added.

The two individuals were found "involved in fake invoices racket having taxable value of Rs 931 crore and fraudulently passing/ availing Input Tax Credit (ITC) amounting to Rs 127 crore through a complex web chain of various entities".

According to the ministry, many entities were under the control of the two persons and they also formed separate entities in the name of their employees/ dummy persons and generated fake invoices without actual movement of goods.

The duo availed fraudulent ITC to offset their GST liability and also passed on such fraudulent ITC to further buyers who availed the same to discharge their GST liability against their outward supplies, it added.

The ministry noted that these activities were done with an ulterior motive to defraud the government exchequer.

During the course of investigation, their employees/ dummy persons admitted of having no knowledge of movement of the goods concerned. 

Also Read: Mumbai-based company cheats SBI of Rs 70 crore; CMD, CEO booked by CBI

Also Read: Top tax official who made sensational allegations against CBDT chairman gets promoted

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