GST officers arrest person for defrauding exchequer Rs 13.76 crore
The Gurugram Zonal Unit of Directorate General of GST Intelligence has arrested a resident of Muzaffarnagar in UP, Pradeep Jain, who’s director of PSR Metals Pvt Ltd, it stated in an announcement.
It added that in investigation, Jain claimed to acquire each outdated and non-guarantee batteries from numerous registered and unregistered sellers and in addition claimed to fabricate lead from outdated batteries and doing buying and selling of latest batteries.
Old or scrap batteries are taxed at 18 per cent, whereas new or recent batteries are taxed at 28 per cent below items and companies tax (GST). However, verification with their suppliers revealed that they’d bought solely recent batteries to PSR Metals Pvt Ltd, the assertion stated.
The ministry stated that based mostly on investigation, it appeared that the corporate was concerned in utilizing bazaar scrap to fabricate battery lead and was utilizing the input tax credit score (ITC) of recent batteries whereas clearing these new batteries with out issuance of invoices.
“Pradeep Jain discovered to have defrauded the exchequer in extra of Rs 13.76 crore by clearance of products with out problem of invoices.
“He was therefore arrested on February 27 under Section 69 of the CGST Act, 2017. The Magistrate sent him to Tihar Jail for 10 days’ judicial custody,” the ministry added.
