GST evasion: Tax officers unearth Rs 52 crore input tax credit fraud

It was further observed that they had made huge purchases in a particular year from Abhishek Industries against which an investigation with regard to availment of ineligible ITC from various non-existent entities has already been undertaken by this office.

GST evasion: Tax officers unearth Rs 52 crore input tax credit fraud
The Gurugram zonal unit of the Directorate General of GST Intelligence (DGGI) had inputs that AKS Electrical and Elecronics Ltd, registered and located at Ghaziabad in Uttar Pradesh, was engaged in "availment and issuance of fake/bogus ITC without the underlying supply of goods".

GST officers have arrested one person on charges of fraudulently availing Rs 52 crore input tax credit by issuing fake invoices and evading taxes, the finance ministry said on Wednesday.

The Gurugram zonal unit of the Directorate General of GST Intelligence (DGGI) had inputs that AKS Electrical and Elecronics Ltd, registered and located at Ghaziabad in Uttar Pradesh, was engaged in “availment and issuance of fake/bogus ITC without the underlying supply of goods”.

It was further observed that they had made huge purchases in a particular year from Abhishek Industries against which an investigation with regard to availment of ineligible ITC from various non-existent entities has already been undertaken by this office.

Based on the verifications, evidences and statements recorded, it appeared that AKS Electrical and Electronics Ltd was involved in availment of inadmissible Input Tax Credit (ITC) on the strength of goods-less invoices received from various firms, including Abhishek Industries, without actual supply of goods.

The quantum of such inadmissible ITC prima facie availed by AKS Electrical and Electronics Ltd turns out to be of more than Rs 52 crore, the ministry said, adding one person has been arrested.

“Director of AKS Electrical and Electronics Ltd was arrested on July 6, 2022, for whom a judicial remand of 14 days was granted,” it added.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos