A local firm's promoter has been arrested for allegedly evading Goods and Services Tax (GST) worth Rs 88 crore by raising fraudulent invoices, officials said Tuesday.
The preventive wing of central GST Ahmedabad-South Commissionerate here busted a racket of issuance of fake invoices wherein huge amount of ineligible input tax credit was fraudulently availed and utilised to evade GST payment, an official statement said.
Sandeep Agrawal, Chief Managing Director of M/s Kushal Ltd, was arrested on Monday for availing wrong input tax credit of Rs 88.78 crore on bogus invoices worth Rs 672.32 crore without receipt of actual goods, according to the statement.
Calls and email to the firm's office did not elicit any response.
The firm at no point purchased or sold any goods but generated fake bills to avail GST input credit. "The entire chain of transactions has been found only on papers," the statement issued by Sachin Gusia, Joint Commissioner (Preventive), CGST, Ahmedabad-South, said.
Multiple firms across the country were used to receive fake input tax credit, it said.
"The central GST department is actively monitoring such frauds involving issuance of fake invoices which leads to major evasion of GST and the department resolves to take suitable action against individual and companies involved in such acts to protect government revenue," the statement said.
Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections. Election results will be out on May 23.