The Directorate General of GST Intelligence (DGGSTI) have arrested one person for creating about 90 fake firms for the purpose of issuing bogus invoices without supply of goods thereon.
The person has been identified as Anupam Singla, a resident of Sirsa, Haryana.
On 18th July, a search conducted at his Delhi offices, from where,
- 110 debit/credit cards belonging to different persons.
- Blank signed cheque books/ blank cheque books pertaining to 173 different bank accounts.
- Blank bilty books belonging to various transporters, identity proofs of different persons, mobile SIM cards and other incriminating documents were found.
The firm has passed on fraudulent ITC to some of the well-established traders and cotton yarn spinners who have availed of the same to discharge their GST liability.
The circular movement of invoicing was took place to defraud government.
Singla had issued invoices worth Rs. 7,672 Crore having GST of Rs. 660 Crore. DGGI Headquarter has recovered an amount of Rs. 32.60 Crore of GST Evasion.
Anupam Singla, who was running the racket, has been arrested and produced before a local court. He was sent to 14 days judicial custody.
The arrest process was initiated under the Goods and Service Tax, 2017 under the relevant provisions
- Offences under the provisions of Sections 132 (1) (c) of the CGST Act,2017;
- Cognizable and non-bailable offences under Section 132(5) of the CGST Act,2017,
- Punishable under Section132(1)(i) of the CGST Act, 2017.
Consequently, Sh. Anupam Singla was arrested on 19.07.2019 under Section 69(1) of the CGST Act, 2017.
Further investigation is in the progress.
After many such tax evasion scams, now the indirect tax administration is using technology and data analysis to identify tax evaders and is closely working with the income tax department.