3 arrested for Rs 58 crore GST evasion
DGGI teams carried out raids at 21 places in Delhi, Madhya Pradesh and Uttar Pradesh and examined documents related to 87 firms.
Jaipur: The Jaipur branch of the Directorate General of GST Intelligence (DGGI) has arrested three men including a tax consultant for the alleged GST evasion of Rs 58 crore.
DGGI teams carried out raids at 21 places in Delhi, Madhya Pradesh and Uttar Pradesh and examined documents related to 87 firms. After examination of the documents pertaining to the trading of more than Rs 316 crore, a tax theft amounting to Rs 58 crore has been detected so far. DGGI suspects that the actual amount of tax evasion may be higher.
One Pankaj and two others Sandeep Kumar Agarwal, a resident of Ghaziabad and Sri Kumar Singh were arrested. Rs 48 lakh cash was allegedly recovered.
DGGI ADG Rajendra Kumar was quoted as saying that the gang was exposed when the agency detected a tax evasion by a Jodhpur-based company. Between July 1, 2017 and December 31, 2017, the company allegedly didn’t pay GST amounting to Rs 9 crore. The firm had GST registration and issued GST invoices, but didn’t pay the tax. Based on the transactions between this firm and many other firms, searches were carried out at 21 places and documents related to a total of 87 firms were seized.
The trio was produced in a court that sent them to judicial custody. In Jaipur, raids were carried out at different offices in Chomu House, Vaishali Nagar and Mansarovar. The accused were allegedly involved in creating bogus firms and depositing tax input credit in their accounts without paying a penny to the department.
Officials said that the accused created bogus firms allegedly using documents of other people without their knowledge. They also allegedly used documents of people who have died to form bogus companies. The offices whose addresses were used either didn’t exist or found unoccupied during investigation.