Cuttack: GST enforcement wings in the state on Friday claimed to have damaged financial fraud involving income loss of RS 115.10 Crore through the use of fake bills as high as Rs 641 Crore to claim input tax credits.
Input tax credits are options in GST filing, which allows traders to claim credit for taxes paid on purchases.
Sushil Kumar Lohani, commercial tax commissioner & GST, said, “Two suspected cases of case – Gurdit Singh (Mitra Managing Tirupati traders and official representatives of M / S Metal Satguru & Power Pvt.
Ltd), and Sujay Maitra (Director M / S SmartAgeis Trade Venture Private Limited) – Arrested from Rourkela and Bhubaneswar, on Thursday.
“Violations can be recognized and cannot be responded to under the GST law.
Duo in collusion with other people use themselves from the Bogus Input Tax Credit (ITC) by increasing the fake purchase invoice with the names of 16 fictitious / non-existent business entities located in Angul, Rourkela, Banai, Ersama, Tirtol, Riamal and Sundargarh, said officials.
During the investigation, it was found that both accused of creation and operation of false companies had obtained evidence of identity such as PAN, Aadhaar, Bank Pass books, etc., from innocent people such as plumber, drivers, electrical mechanics, LPG men shipping, Unemployed young men and people under the poverty line living in houses built under Indira Awaas Yojana and take advantage of PDS facilities in various regions such as Panikoili, Bari, Rasgovpur, Balgarh, Puri and Jharkhand.
Identity documents are collected with the pretext involving them in various companies.