Among those arrested, at least two persons have been booked under COFEPOSA(Conservation of Foreign Exchange and Prevention of Smuggling Activities Act) also.
Eight Chartered Accountants (CAs)have been arrested so far under the nationwide drive against fake GST invoices, sources in the revenue department said on Monday. The two-halfmonth-long campaign has resulted in arrests of 258 persons who were found to be availing input tax credit (ITC) fraudulently.
Among those arrested, at least two persons have been booked under COFEPOSA(Conservation of Foreign Exchange and Prevention of Smuggling Activities Act) also. The GST intelligence and Central GST authorities have booked more than 2,500 cases against 8,000 fake GST-registered entities during the drive so far. They have also recovered over Rs 820 crore of evaded GST.
The typical modus operandi of the chartered accountants has been to float multiple non-existent firms and fake entities to dupe the exchequer with fraudulent ITC utilisation in connivance with fraudsters and fly-by-night operators, sources said. They added that the department has shared information with chartered accountants’ regulatory body Institute of CharteredAccountantsof India (ICAI) on the arrested professionals, and the body has been asked to take appropriate action.
The revenue department has attributed its success in weeding out tax evasion on complete data sharing among GST, customs and income tax, and use of data analytics including AI and machine learning.