State GST arrested the mastermind of bogus billing of Rs 53 crore, judicial remand till August 3

Raipur. Chhattisgarh State GST Department, taking major action under the special campaign against fake billing and bogus Input Tax Credit (ITC), has arrested the main accused and mastermind Vijay Kumar Yadav on July 20 in the case of tax fraud of Rs 9.54 crore through bogus billing of Rs 53 crore. After being produced in the court, the accused has been sent on judicial remand till August 3.

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Preliminary investigation revealed that the accused operated two firms named M/s Maya Steel and Enterprise and M/s Myra Steel Enterprises for the purpose of fake billing. Through these two firms, bogus billing of about Rs 53 crore was done and fake input tax credit (ITC) of Rs 9.54 crore was transferred to various firms. Detailed investigation also revealed that the accused had claimed fake input tax credit from defunct and shell firms and used the same to pay their tax liabilities.

According to the investigation, the accused not only transferred fake input tax credit of Rs 9.54 crore to other firms, but also claimed and utilized fake ITC of the same amount himself. Unfair benefit of input tax credit was taken by showing transactions only on the basis of bills without actual purchase and sale of goods, causing loss of revenue to the government.

Major irregularities revealed in investigation

– Fake input tax credit of Rs 6.13 crore was claimed and utilized through Form ITC-02 from 10 firms whose GST registration had been canceled or which were related parties even though there was no actual merger, de-merger or amalgamation between them.

– Fake input tax credit of Rs 1.99 crore was claimed and utilized from 9 such firms of other states including Punjab, whose GST registration was canceled or which were non-existent and from which no actual supply of goods was made.

– Additional input tax credit of Rs 1.41 crore was claimed and availed in GSTR-3B as compared to GSTR-2B, without any actual purchase.

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