The GST Chennai Outer Commissionerate arrested a man from Ambur on Saturday, for masterminding a fraudulent Input Tax Credit (ITC) racket worth 11.90 crore.
The accused obtained multiple GST registrations using forged documents and fictitious addresses, said officials. “He floated dummy firms that issued bogus tax invoices without any actual supply of goods or services. These invoices were then used by businesses to fraudulently claim input tax credit (ITC), with the accused collecting commission from the beneficiaries,” an official added.
Officials said the fraud involved input tax credits of 11.90 crore on an invoice value of 238 crore. All the firms that availed themselves of the fraudulent credits have been identified, and action is being initiated against them.
Source #TOI
