Four top officials of various private companies have been arrested for allegedly taking a forged input tax credit (ITC) of Rs 408.67 crore in three separate cases.
The Directorate General of GST Intelligence said on Wednesday that the arrests of these people came after the secret was revealed that they had issued input tax credit of Rs 408.67 crore by issuing fake invoices without supplying any goods.
The four accused were produced in the court after arresting them on the basis of various sections of the Central Goods and Services Act, 2017. The court has sent the four to judicial custody till 24 November.
The Directorate General did not reveal the names of the arrested accused. It is just said that the arrested accused include the director of Rana Megastructures, the proprietor of SCS Hardware and Networking, the director of Saffron Metal, and the managing director of Shailaja Commercial Trade Frenzy. All these were done by the Mumbai Zone Unit of Directorate General of GST Intelligence on Tuesday.
According to the Directorate General, SCS Hardware fraudulently claimed Rs 85.38 crore of ITC and transferred the same amount of ITC to Rana Megastructures through a fake invoice of Rs 474 crore issued without any supplies.
Rana Megastructures transferred ITC worth about Rs 85.44 crore to another company without any supply. This sequence continued like this. The Directorate General said that many arrests have already been made in this case.
In another case, a case of Rs 103.78 crore ITC was recovered in a fraudulent manner by a group of companies like Saffron Metal, Kajal Trading Company, Hitech Impex, Gravity Alloys, and Sunshine Impex. In the third case, the case of Shailaja Commercial Trade Frenzy also got the ITC of Rs 48.69 crore on the basis of fake invoices.