Delhi: CGST arrests man for input tax credit fraud of around Rs 94 cr


The officers of CGST Delhi North Commissionerate upon data analysis and gathering of intelligence zeroed in on Krishan Kumar who was found involved in creating and operating fake firms using identification documents of his friends and employees, a Finance Ministry statement said on Friday.

The investigation conducted on the matter so far, has revealed a total of 5 fake firms that were created by Kumar for the issuance of goods-less invoices for items like butter, ghee and oil and passed on inadmissible Input Tax Credit (ITC) of about Rs 94 crore, the statement added.

During the search of Kumar’s residence incriminating documents like ATM cards, signed cheques, bank documents, stamps of these dummy firms including stamp of the transport company as mentioned in the e-way bills of the fake firms and outer packets and cases of SIM cards of mobile phones used for registration of firms were recovered.

In view of the above Krishan Kumar has thus committed offence specified under Section 132(1)(b) of the CGST Act, 2017.

He was arrested on Thursday under the provisions of the Section 69(1) of the CGST Act, 2017, the statement said.

Kumar has been sent to 14-day judicial custody. Further investigation on the matter is under process.

It is pertinent to mention here that in the financial year 2020-21, CGST Delhi Zone has made 40 arrests in total under various cases involving GST evasion amounting to Rs 5,310 crore.