GST Fraud Rs 43 Crore detected

By | March 12, 2021
(Last Updated On: March 12, 2021)
Ministry of Finance

DGGI Gurugram officials arrest man for input tax credit fraud of more than Rs 43 crore

Posted On: 11 MAR 2021 12:05PM by PIB Delhi

The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana, has arrested Shri Ravinder Kumar (aka Ravinder Garg), resident of New Delhi on charges of creating and operating fictitious firms on forged documents which were used in availing of and passing on Input Tax Credit on bogus Invoices without actual receipt and supply of goods or services.

It is apparent from the investigation conducted till date, that Shri Ravinder Kumar created multiple proprietorship, partnership firms and private limited companies based in Haryana, New Delhi and Jharkhand merely on paper. Shri Ravinder kept eluding the investigation and did not appear before the investigating authorities even after issuance of Summons on multiple occasions.

Shri Ravinder was absconding and kept changing his locations, the officers kept watch on his frequent places and after a long period of monitoring and active surveillance, were able to nab him.  He admitted to have created two Private Limited Companies, one partnership firm and multiple proprietorship firms which have generated sham invoices without goods amounting to Rs. 237.98 crore and passed on fake ITC amounting to more than Rs 43 crore.

The investigation spanned multiple locations in Delhi and Haryana and based on documentary evidence and statement recorded, it was established that Shri Ravinder Kumar is the key person in orchestrating this racket of creating fake firms on forged documents. Accordingly, Ravinder Kumar was arrested on 09.03.2021 and produced before the Metropolitan Magistrate, New Delhi, who ordered 14 days judicial custody.

Further investigations in the matter are under progress.

Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

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