Letter: In a large breakthrough, detective unit anti-embezzling GST centers, letters, damaging the fraud of an integrated GST refund amounting to RS 163 Crore.
Kingpin from the racket, Abdul Samad Kapadiya, a former garment retailer, was arrested by CGST on Thursday.
Kapadiya cheatedly obtained input tax credit (ITC) from RS 26 Crore by deceiving the government.
Leather companies and bank accounts opened on behalf of workers and vendors for fraud, investigations revealed.
Kapadiya has created 21 fake companies and opened a bank account with their names too.
He began putting a fake bill and then claiming ITC also on the fake bill.
“The defendant opened 21 bank accounts for the same number of companies but installed fake transactions and bills in just 11 companies to claim ITC.
If he used the 10 remaining companies and their accounts, he would deceive the government with a much larger amount,” said a person CGST senior officials to Tii.
“The defendant Kapadiya has been sent to the guardian for 14 days.
Further investigation is being carried out by the CGST department,” said Nayan Sukhadwala, district government government.
“Analysis of CGST minutes and trailing transactions exposes racquets,” another senior official which is part of the operation.
“We have developed strong data analysis and financial fraud investigative mechanisms that weaken our economy.
The black money produced further finances other crimes,” he added.
Of the total Rs 26 Crore, Kapadiya has taken the ITC RS16.5 Crore Suo Motu without ITC available for them.
Investigation by the Anti Evasion unit revealed that Kapadiya runs a garment showroom in the Chowk Bazaar area in the city.
The showroom closed a few months ago.
“Meanwhile, Kapadiya made money through a racket,” the official added.
During the investigation, it was found that these dummy companies were made using aadhaar cards, PAN cards and bank details from various people.
“Those who provide the details of their identity are poor people paid by several thousand rupees,” said a senior official.
“He doesn’t buy any item and therefore, just sell anything other than just a fake bill as evidenced to prove the transaction.
All trade is displayed on paper where ITC is claimed,” the official added.