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The Central Goods and Services Tax (CGST) Commissioner, Delhi, has uncovered a multi-layered network of fictitious companies generating and transmitting fake input tax credits as part of its drive against fake billing operations (ITC). The Commissioner said that a key person in the case was arrested, who confessed to being involved in the racket of fake invoices worth ~541 crore.
The statement issued by Commissioner CGST, Delhi East, said, “By using extensive analytics,Delhi East GST officers have been able to identify and unravel the network of 46 fake companies that have been operating since 2017 and have forwarded fake ITCs to multiple recipients.”
It added that the investigation conducted revealed that one Arvind Kumar and his associates supposedly controlled the fictitious companies. “On January 17th, he was arrested. Kamal Singh (aka Kamal Solanki), Kumar’s key associate, has been absconding for the past month.However, the officers were finally able to apprehend Singh through persistent efforts and he admitted to participating in the racket of fake billing through which fake invoices were raised to the tune of 541.13 crores, the statement said.
It added that the total ITC available is worth approximately 82 crore, but as the investigation progresses, it is expected to increase.
Singh was arrested and brought before a duty magistrate under the CGST Act on Tuesday, who sent him to judicial custody until February 23.
The statement added that since the inception of GST, Delhi Zone has made 21 arrests in various cases involving evasion amounting to more than ₹3791.65 crore.
