The Directorate General of GST Intelligence has arrested one person for allegedly availing of input tax credit on the basis of invoices without actual supply of goods, an official statement said.
The Directorate General of GST Intelligence has arrested one person for allegedly availing of input tax credit on the basis of invoices without actual supply of goods, an official statement said.
NEW DELHI : The Directorate General of GST Intelligence (DGGI) has arrested one person for allegedly availing of input tax credit on the basis of invoices without actual supply of goods, an official statement said.
DGGI's Gurugram unit found that a firm located at Ghaziabad in Uttar Pradesh was engaged in using and issuing fake input tax credit without supply of underlying goods. It was observed that they had made huge purchases from another firm already facing investigation for allegedly availing ineligible tax credit from various non-existent entities, the statement said.
It also said that evidence showed the company in Ghaziabad was involved in availing of inadmissible tax credit on the strength of invoices received from various firms without actual supply of goods. The quantum of such inadmissible tax credit is more than ₹52 crore, the statement said. The director of the company was arrested last week and a judicial remand of 14 days was granted, said the statement.
GST authorities have been tightening the compliance requirements and the enforcement efforts to check tax evasion. These measures are expected to continue in the coming months as the government tries to make the GST system more efficient