215 Tax Payers Arrested For Fooling Govt With Fake GST Invoices; Rs 700 Cr Recovered

A total of 215 tax evaders arrested by GST Intelligence authorities, recovering over Rs 700 crore in 2 months.
A total of 215 tax evaders arrested by GST Intelligence authorities, recovering over Rs 700 crore in 2 months.

A total of 215 people have been arrested under the accounts of tax evasion, by the Directorate General of GST Intelligence (DGGI), which is a law enforcement agency under the Ministry of Finance responsible for fighting tax evasion in India.

These evaders constitute a significant number of directors and proprietors of several business and trade entities.

The DGGI has so far recovered a sum of more than Rs 700 crore from the 215 individuals arrested, in a period of two months.

Let’s learn more about this.

Rs 700 Cr Recovered from Tax Evaders

The law enforcement agency for tax evasion has arrested 215 people for tax evasion, including GST fake invoice frauds and deceitful operators, who make use of  input tax credit (ITC) in multi-layered scams.

The DGGI has in the past 2 months, recovered a total of more than Rs 700 Cr from these arrested evaders.

Additionally, more than 2,200 cases have been registered, followed by over 6,600 cases of fake GSTIN entities, by the GST intelligence authorities.

Technology Used to Get Hold of Evaders

The DGGI credited the technology advancement and its usage, for successfully getting hold of the evaders and recovering the sum from them.

They added that  the recent usage of data analytics, data-sharing and AI along with BAFTA tools has helped the agency to detect fraudsters with precise inputs.

In their statement, they have mentioned that of the 215 people arrested so far, there are 71 masterminds, 81 proprietors, 36 director/managing directors, 15 partners, 3 CEOs, 6 chartered accountants and one each of company secretary, broker, and GST practitioner.

“Those arrested include managing directors, directors, proprietors and partners of various business and trade entities who are either involved in availing and/or utilizing the ineligible ITC fraudulently”, added the statement.

Mumbai Zone Marks Maximum Number of Evaders

Of the total number of people arrested in the past 2 months, 17 were arrested for fake invoice frauds. Of this, the maximum arrests were made from the Mumbai zone, as dictated by the agency.

The numeral figure of the total arrests made from this zone is given to be 23 people, followed by 14 people from Ahmedabad.

Of these 14 individuals arrested from the Gujarat capital, 8 were booked for input tax credit of more than Rs 113 crore through fake invoices in garments, copper waste scrap, medicines, ferrous waste and scrap, cement and coal, as informed by HT.

Similarly, an individual arrested from the Delhi zone, was charged for setting up more than 12 bogus farms. This man also availed the input tax credit worth nearly Rs 150 crore.

Other individuals arrested came from all over the place, including Bengaluru, Bhubaneswar and Chennai.

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