GST fraud case: Two directors of Mumbai-based firms nabbed

By: | Published: May 20, 2018 10:55 AM

The Directorate General of Goods and Services Tax Intelligence (DGGSTI) has arrested the directors of two Mumbai-based firms in connection with an alleged GST and service tax fraud case. The case amounts to Rs 173 crore alleged fraud.

DGGSTI has arrested the directors of two Mumbai-based firms in connection with an alleged GST and service tax fraud case.

The Directorate General of Goods and Services Tax Intelligence (DGGSTI) has arrested the directors of two Mumbai-based firms in connection with an alleged GST and service tax fraud case. The case amounts to Rs 173 crore alleged fraud. According to The Indian Express, the alleged director of a firm Horizon Outsource Solutions Private Limited, Amit Upadhyaya has taken the GST credit of Rs 80 crore from the government by submitting false invoices of software services. The firm received the said invoices from Asad Anwar Sayed of Best Computer Solutions Private Limited since July 2017. The investigation also revealed that Horizon Outsource had issued fake invoices claiming GST of Rs 47 crore to its clients.

“The agency has found that Horizon Outsource has issued and received fake invoices of about Rs 127 crore. While the case is still under investigation, Upadhyay may have also used bogus invoices to increase the turnover of his company and in turn increase his borrowing capacity from the banks,” said a source to IE. The probe agency also suspects that the company may have been involved in money laundering.

According to reports, the firm has allegedly submitted a document showing a turnover of Rs 400 crore for the financial year 2016-17. Apart from these, the investigation agency has also found that under the Finance Act, Horizon Outsource has collected service tax of Rs 47 crore from the period between April 2016 and June 2017. The agency also alleged that the firm had not deposited the said amount with the government.

The firm (Horizon Outsource Solutions Private Limited) was set up in March 2011 with an authorised paid-up capital and share capital of Rs 10 crore each respectively. According to records, the firm is involved in the business of book keeping, accounting, auditing, market research, tax consultancy, public opinion and manpower outsourcing etc. While another firm (Best Computer Solutions Private Limited) was set up in March 2012 with an authorised paid-up capital and share capital of Rs 1 lakh and Rs 5 lakh respectively. The firm is involved in the business of data processing only.

Both the directors have been remanded to Judicial custody till June 2.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition