The kingpin, Arvind Kumar, was operating 46 fake firms through which Fake GST ITC was passed on for a commission.
Another arrest has been made in relation to GST fake ITC frauds and this time the case unearthed is from East Delhi where the person arrested on 18th January was operating 46 fake firms. He is alleged to have passed on fake input tax credit of Rs. 82.23 crores as per reports from the Finance Ministry.
The officials of Central Goods and Services Tax (CGST) Commissionerate, Delhi East have uncovered what appears to be a multi-layered network of fictitious firms. These fictitious firms were being used to generate and pass on the fake Input Tax Credit.
This fake ITC network was being operated by the Delhi East resident Arvind Kumar who was arrested. Arvind Kumar used to pass on the fake ITC for which he used to charge a commission of 4 to 4.5 percent of the invoice value.
It has been revealed in the investigation that there were 46 fictitious firms that were operated by him and his associates.
These fake firms created by Arvind Kumar and his associates carried no business activity and were created with the only purpose to pass on fake ITC, as per the statement issued by the ministry.
Rs. 82.23 crore is the total amount of fake ITC generated out of the fake billing of Rs. 541.13 crore through these firms. And as per the statement from the ministry, the figures are based on the investigation conducted so far and is expected to increase as further investigation would progress.
Arrested Arvind Kumar has been held for 14 days of judicial custody till 31st January.
The scam was uncovered through the use of extensive data analytics by the GST officials. 21 premises are said to have been searched between the period from January 15 to January 17 which led to the uncovering of the network of fictitious firms generating fake bills and passing on Fake GST ITC since 2017.
