The Goods and Services Tax (GST) Authority arrested four people last week in separate tax evasion cases worth ₹52 crores and ₹78 crore as part of its fight against fake invoices, a spokesman for the Union Finance Ministry said on Monday.
The official said West Delhi’s Central Goods and Services Tax (CGST) Commissary on Wednesday arrested a man for fraudulently assisting at least six companies to embezzle Input Tax Credit (ITC) using false invoices and an Aadhaar identification number. Separately, the CGST Mumbai Zone on Sunday arrested three associates of a company for GST fraud amounting to ₹78 crore, the official said and added that tax authorities are making extensive use of data analytics and artificial intelligence to check for tax evasion and catch the culprits.
“Based on an alert, an investigation against M/s Niyati Steels has been undertaken by the CGST Delhi West Commissionerate. A Shri Karan Kumar Aggarwal, in his self-declarations, admitted that he handles all day-to-day transactions and operations of the said company,” the ministry said in a statement and added that the company has enlisted the ‘ITC. ₹7.7 crores of non-existent entities.
Through further investigation and the use of analytical tools, six other companies were found to be linked to Agarwal, he said.
“These companies, based on invoices without goods worth approx. Rs. 292 crore, have collectively used ineligible/ineligible ITCs of over Rs. 52 crore from non-existent entities,” he added.
Agarwal admitted in his voluntary statement that he used his Aadhaar for authentication in all these six companies and issued invoices without goods without receiving goods in some of these companies and he is also involved in selling invoices without goods goods for the commission of 3% to 4% of the taxable value of the invoices, specifies the ministry.
“In view of his own admission of his involvement in the use of ineligible/ineligible ITC and supported by data analysis, Karan Kumar Agarwal has been arrested for offenses under Section 132 of the CGST Act of 2017 read with article 69 of said law and referred to Judicial Guard by the Ld. ACMM [Additional Chief Metropolitan Magistrate] Court for 14 days,” the ministry statement said, adding that authorities were further investigating the matter.