GST refund of over Rs 27 crore by creating fake companies; issued bogus bills Rs 238 crore, arrested

A 26-year-old man has been arrested by the Maharashtra Goods and Services Tax (GST) department for fraudulently claiming a refund of more than Rs 27 crore through a fake input tax credit involving at least two “non-genuine” firms, an official said on Wednesday.

The GST department carried out a special operation against the errant companies availing fake input tax credit and claiming fraudulent GST refunds.

During the investigation, it was found that the arrested accused is one of the conspirators who facilitated the creation and operation of these non-genuine companies, the GST official said.

Issued bogus bills of more than Rs 238 crore

He facilitated the opening and operation of bank accounts of these companies which had issued bogus bills of more than Rs 238 crore.

“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 added.

The accused was arrested on Tuesday and remanded in judicial custody for 14 days. The GST invoices are called fake when they are raised by an entity without actual supply of goods or services or payment of GST.

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