Shivani Bhakoo

Tribune News Service

Ludhiana, December 24

During the course of investigation into alleged Goods and Services Tax (GST) fraud following the arrest of key suspect Sahil Jain by the CGST Commissionerate here on November 11, the name of Jain’s relative Amandeep Singh Bhui has cropped up.

Bhui owned and operated seven firms under different names and permanent account numbers (PANs). These firms were allegedly involved in issuance of fake invoices and fraudulent availing of income tax credit (ITC).

Bhui has admitted to having connived with Jain in issuing fake invoices and passing on fake ITC through additional 16 bogus firms (in addition to seven firms owned by him) created or operated by him and Jain.

Ashutosh Baranwal, Principal Commissioner, in a press release today said Bhui had confessed that these firms had indulged in issuance of invoices without actual receipt/supply of goods.

Bhui, through the seven firms, had issued fake invoices valued at Rs 97.43 crore involving ITC of Rs 8.08 crore. Through 16 additional firms, he in connivance Jain further issued fake invoices valued at Rs 296.48 crore with the ITC amounting to Rs 24.94 crore.

In all, Bhui issued fake invoices valued at Rs 393.91 crore, involving fraudulent ITC of Rs 33.02 crore, through 23 fake firms, said Baranwal.

The firms were opened and registered on common commercial addresses and the name board of the firm displayed outside the rented premises was simply changed to hoodwink the GST authorities visiting the premises for physical verification.

Based on the documentary evidence and admittance of GST fraud by Bhui and for his connivance with Jain in wrongful availing of the ITC as well as passing on of fake ITC without actual supply of goods, the former appeared to have committed offences specified under GST Act, 2017, the statement said. As the ITC involved was more than Rs 5 crore, the accused were placed under arrest yesterday and remanded in 14-day judicial custody.

This is the eighth arrest by the CGST Commissionerate here since November 11 as part of a drive against those defrauding the exchequer by issuing fake invoices and passing fraudulent ITC and monetising it.