The finance ministry said on Wednesday that GST authorities have detained one individual on accusations of fraudulently claiming Rs 52 crore in an input tax credit by generating phony invoices and dodging taxes.
The Gurugram zonal unit of the Directorate General of GST Intelligence (DGGI) received information that AKS Electrical and Electronics Ltd, based in Ghaziabad, Uttar Pradesh, was engaged in the “availment and issue of fake/bogus ITC without the underlying supply of products.”
It was also discovered that they had made large purchases from Abhishek Industries in a specific year, for which this office has already conducted an inquiry into the receipt of invalid ITC through numerous non-existent businesses.
Based on the verifications, evidence, and statements obtained, it appeared that AKS Electrical and Electronics Ltd was involved in the illegal receipt of Input Tax Credit (ITC) based on goods-less invoices received from various firms, including Abhishek Industries, without the actual supply of goods.
The sum of such inadmissible ITC obtained by AKS Electrical and Electronics Ltd appears to be more than Rs 52 crore, according to the government, which added that one individual has been detained.
“On July 6, 2022, the Director of AKS Electrical and Electronics Ltd was detained, and a judicial remand of 14 days was obtained,” it stated.