This Man Claimed Rs 27 Crore Of GST Refunds Using Fake Companies!

The Maharashtra GST Department has arrested a criminal for false claims of a refund of more than Rs. 27 crores!

This Man Claimed Rs 27 Crore Of GST Refunds Using Fake Companies!

He reportedly claimed these refunds by creating fake input tax credits under the name of two fake firms. 

Read on to find out all the details!

Maharashtra GST Department Arrests Man For Claiming Fake GST Refunds Of 27 Crores!

The Maharashtra Goods and Services Tax (GST) department has detained a 26-year-old man for illegally claiming a refund of more than Rs 27 crore through a fictitious input tax credit that involved at least two “non-genuine” businesses. This was also confirmed by a GST official.

As per reports, a special operation was carried out against the companies that were availing false input tax credits and obtaining false GST refunds.

For those unaware, when an entity raises GST invoices without actually supplying goods or services or paying GST, they are referred to as fake invoices.

The official also revealed that the investigation results showed that the arrested man is one of the conspirators who made it possible for these fake companies to be founded and run.

The scamster reportedly opened and operated bank accounts of these companies and issued bogus bills of more than Rs. 238 crores. 

“These companies availed of a fake input tax credit worth more than Rs 34 crore and claimed fraudulent GST refund of Rs 27.20 crore. The investigation is under progress to find other conspirators in the operation of these companies,” the official confirmed.

History Of GST Frauds

As reported earlier, the CGST zones and the Directorate General of GST Intelligence (DGGI) booked about 8000 cases involving fake ITC of over Rs. 35000 crores in the financial year 2020-21.

There also was the time when around 132 people were arrested for facilitating GST fraud, and this also includes Chartered Accountants, who created such fake input tx credit invoice to evade GST.

Around 1400 cases were booked against 4500 fake registered companies, which were being used to generate fake invoices to avail GST exemptions.

One of the CAs arrested had allegedly created 14 fake companies for these fake input tax exemptions.

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