SIT Punjab State GST Ludhiana arrests three persons 

Ludhiana: Officers of Special Investigation Team, Punjab State GST, Ludhiana have arrested three persons being proprietors/Kartas of the firms located in Ludhiana that had claimed fraudulent ITC created by way of bogus invoices actual purchase of goods (readymade garments) through purchases shown from bogus/non-existent firms.

According to Tejbir Singh Sidhu, Deputy Commissioner (State GST), Ludhiana, search and seizure operations were conducted at four premises by the teams of the department including business premises of the accused in order to gather evidence for establishing the modus operandi that involved utilizing the fake invoices without actual receipt of goods. A network of bogus firms using fake IDs in the name of various persons including daily wagers, waiter, auto-rickshaw driver etc were created across five different states in order to pass on the fraudulent ITC to the final beneficiaries (accused).

He added that the accused used the fraudulent ITC generated by way of fake invoices for the purpose of exports which were IGST paid and thereafter claimed refund from the customs authorities. Investigation had revealed that the bogus billing network of the non-existent firms was used to generate fake invoices of more than 350 crores resulting into utilization of ingenuine ITC worth more than 30 crores. The accused three persons had utilized about 23 crores of the total fraudulent ITC.

Adding, he said the have been arrested today (November 10, 2020) under the provisions of GST laws and remanded to judicial custody for 14 days.

Action against other beneficiaries is also being initiated, he said in a release issued here today.