Scrap dealer, two others held for ₹58 crore GST credit fraud

The arrested persons issued fake invoices to the extent of ₹423.2 crore

The Chennai Outer Commissionerate has arrested a scrap dealer from Vellore and two others for allegedly committing a GST credit fraud by issuing fake invoices to the extent of ₹423.2 crore and passing on illegal and unlawful Input Tax credit to the tune of about ₹58 crore. The case against the arrested persons is that they along with some accomplices have taken GST registrations by misusing the KYC documents of other persons.

44 fictitious firms

Using the KYC documents, the mastermind of the alleged fraud has floated 44 fictitious companies, according to an official statement.

Out of 44, the mastermind had operated 24 companies to issue the fake invoices, while the remaining 20 companies have been sold to other persons who are engaged in the same modus operandi of issuing fake invoices and thereby passing on fraudulent Input Tax credit, it added.

Besides, 56 fictitious companies were created and operated by others, for which the mastermind acted as commission agent for providing customers interested in buying fake invoices without actual supply of goods or services.

All three persons have been remanded in judicial custody.

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