New Delhi: A local firm’s promoter has been arrested for allegedly evading Goods and Services Tax (GST) worth Rs. 88 crore by raising fraudulent invoices, officials said Tuesday.
The preventive wing of central GST Ahmedabad-South Commissionerate here busted a racket of issuance of fake invoices wherein huge amount of ineligible input tax credit was fraudulently availed and utilised to evade GST payment, an official statement said.Also Read - Domestic Flights: Akasa Air Announces Operation Over 150 Weekly Flights By September-End

Sandeep Agrawal, Chief Managing Director of M/s Kushal Ltd, was arrested on Monday for availing wrong input tax credit of Rs. 88.78 crore on bogus invoices worth Rs. 672.32 crore without receipt of actual goods, according to the statement. Also Read - Independence Day Special: What's In A Name? Major Cities In India And Their Unique Sobriquets

Calls and email to the firm’s office did not elicit any response. Also Read - MapmyIndia Takes On Google With India's First 360-degree Panoramic Street View

The firm at no point purchased or sold any goods but generated fake bills to avail GST input credit. “The entire chain of transactions has been found only on papers,” the statement issued by Sachin Gusia, Joint Commissioner (Preventive), CGST, Ahmedabad-South, said.

Multiple firms across the country were used to receive fake input tax credit, it said.

“The central GST department is actively monitoring such frauds involving issuance of fake invoices which leads to major evasion of GST and the department resolves to take suitable action against individual and companies involved in such acts to protect government revenue,” the statement said.