West Delhi’s division of the Central Goods and Services Tax (CGST) Commissionerate on Thursday arrested a person for fraudulently providing Input Tax Credit (ITC) of ₹7.7crore.
The union ministry of finance released a statement pointing out the investigation details against a company.
“On the basis of an alert, an investigation against M/s Niyati Steels has been undertaken by CGST Delhi West Commissionerate. One Shri Karan Kumar Aggarwal in his voluntary statements has admitted that he looks after all day-to-day transactions and operations of the said firm. The said firm has availed ITC of ₹7.7 crore from non-existent entities,” the statement said.
The ministry said six more firms were linked with Agarwal and he used his Aadhaar to authenticate fraudulent ITC and generate invoices without receiving any goods in these firms. He also used to sell these goods-less invoices charging 3-4% commissions of their taxable value.
“Through further inquiry and the use of analytical tools, it was found that six more firms were linked with Shri Karan Kumar Agarwal. These firms, on the strength of goods-less invoices worth approx. ₹292 crore, have collectively availed ineligible/inadmissible Input Tax Credit (ITC) of more than ₹52 crore from non-existent entities,” the ministry said.
Agarwal was arrested under section 132 and 69 of the CGST Act, 2017.