New Delhi: Two persons were arrested by the directorate general of GST Intelligence (DGGI) in connection with a fake invoices racket involving Rs 931 crore.
The DGGI,Gurugram Zonal Unit (GZU) of Haryana has arrested Gulshan Dhingra and Sanjay Dhingra of New Delhi who were found involved in fake invoices racket having taxable value of Rs. 931 crore and fraudulently passing/ availing Input Tax Credit (ITC) amounting to Rs. 127 crore through a complex web chain of various entities.
Many of these entities were under their control and they also formed separate entities in the name of their employees/ dummy persons and generated fake invoices without actual movement of goods, namely ferrous/ non-ferrous scrap, ingots, nickel cathode , thereby causing loss to exchequer by evasion of GST. They availed this fraudulent ITC to offset their GST liability and also passed on such fraudulent ITC to further buyers who availed the same to discharge their GST liability against their outward supplies with an ulterior motive to defraud the government exchequer. During the course of investigation, their employees/ dummy persons admitted of having no knowledge of movement of above mentioned goods.
The DGGI has arrested Gulshan and Sanjay for committed offences under the provisions of Section 132(1)(b) & (c) of the Central Goods & Services Tax Act (CGST), 2017, which are cognizable and non-bailable offences and punishable under Section 132 of the CGST Act, 2017. The two were produced before judicial magistrate in Gurugram Court which sent them to judicial custody till 19th October, 2019.