As part of its drive against fake billing operations, the Central Goods and Services Tax (CGST) Commissionerate, Delhi, has unearthed a multi-layered network of fictitious firms generating and passing on fake input tax credit (ITC). The Commissionerate has said it arrested a key person in the case, who has confessed to involvement in the racket of fake invoices worth ₹541 crore.
A statement issued by Commissioner CGST, Delhi East, said, “Through the use of extensive data analytics, officers of Delhi East GST were able to identify and unravel a network of 46 fake firms which were operating since 2017 and had passed on fake ITC to multiple beneficiaries.”
It added the investigation conducted revealed that the fictitious firms were being allegedly controlled by one Arvind Kumar and his associates. “He was arrested on January 17. Kumar’s key associate - Kamal Singh (alias Kamal Solanki) had been absconding for the past one month. However, through persistent efforts, the officers could finally apprehend Singh and he has confessed to involvement in the racket of fake billing through which fake invoices to the tune of ₹541.13 crores were raised,” the statement said.
It added that the total ITC availed is worth around ₹82 crore, but it is expected to increase as the investigation progresses.
Singh was arrested under the CGST Act and produced before a duty magistrate on Tuesday, who remanded him in judicial custody till February 23.
The statement added that since the inception of GST, Delhi Zone has made 21 arrests in various cases involving evasion amounting to more than ₹3791.65 crore.