CA, two businessmen arrested for GST fraud

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MUMBAI: The central GST authorities in Thane on Wednesday arrested two businessmen and a chartered accountant for allegedly floating fake companies and fraudulently claiming input tax credit on transactions of over Rs 60 crore.

Input tax credit allows taxpayers to claim credit for taxes paid on purchase. Traders often buy fake bills to claim input tax credit on supply that never occurred.

Businessmen Babulal Choudhary floated the fake firms with Dharmendra Pandey and CA Rajesh Sharma. The payments received in the name of the supplying company by way of cheque or online transfer were withdrawn and returned to the company in cash.

Choudhary paid people Rs 15,000 for allowing their names to be used to set up such companies and obtain GST registration. Pandey is one of those who allowed his name to be used, the remand application filed by the department said. Sharma helped Choudhary in filing periodical returns despite being fully aware that the there was no physical movement of goods and only paper transaction was taking place. Officials are searching for one Vinay Mishra.

Source : https://timesofindia.indiatimes.com/city/mumbai/ca-two-businessmen-arrested-for-gst-fraud/articleshow/65713080.cms

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