GST AUTHORITIES ARREST 215 PEOPLE FOR BILL FRAUD
THOSE ARRESTED INCLUDE 81 BIZ OWNERS, 36 DIRECTORS, 3 CEOS, 6 CAS AND ONE CS
The goods and services tax (GST) authorities have arrested 215 people, including 81 proprietors, 36 directors, three chief executives, six chartered accountants and one company secretary involved in fraudulently misappropriating input tax credit (ITC) by using purchase invoices issued by fake companies, a finance ministry official said.
“GST intelligence authorities have found [that] more than 6,600 fake GST registered entities [were] involved in similar fraud. They have so far also booked about 2,200 cases and recovered more than ₹700 crore from these fraudsters,” the official said requesting anonymity.
Armed with a list of over 6,600 business entities evading GST, the government launched a massive crackdown against GST frauds in November. This was after the Law Committee of the GST Council took cognisance of large scale ITC fraud through fake companies.
“In its concerted drive for the last two months across the country against GST fake invoice frauds by fake entities and fly-bynight operators who fraudulently avail, pass on and utilise input tax credit in multi-layered scams, the Directorate General of GST Intelligence and the CGST Commissionerates have so far arrested 215 persons and the drive against tax evasion is under progress,” the official said.
Those arrested include the operators of fake entities and their end beneficiaries. These fraudsters generate fake invoices on commission basis, he said. “Use of data analytics, data-sharing and AI [artificial intelligence] has enabled the government to identify layer-by-layer activities of these fake entities and pinpoint the fraudsters with precise input,” the official added.