New Delhi: Two people have been arrested in a racket of taxable value of Rs. 931 crore that involved fraudulently availing Input Tax Credit (ITC) amounting to Rs. 127 crore through a complex web chain of various entities. The duo has been remanded to judicial custody till 19th October 2019.
The Directorate General of GST Intelligence (DGGI) along with Gurugram Zonal Unit (GZU), Haryana arrested Gulshan Dhingra, a resident of Ramesh Nagar and Sanjay Dhingra of Punjabi Bagh.
Police said, “Many of these entities were under their control and they also formed separate entities in the name of their employees and generated fake invoices without actual movement of goods, namely non-ferrous scrap, ingots, nickel cathode etc. thereby causing loss to exchequer by evasion of GST. They availed this fraudulent ITC to offset their GST liability and also passed on such fraudulent ITC to further buyers who availed the same to discharge their GST liability against their outward supplies with an ulterior motive to defraud the Government exchequer.”
“The case has been registered under the IPC section 132(1)(b) & (c) of the Central Goods & Services Tax Act (CGST), 2017, which are cognizable and non-bailable offences and punishable under Section 132 of the CGST Act, 2017.”
“Court has sent them to judicial custody till 19th October, 2019. Further investigation is in progress,” said Police.