The Preventive Wing of the Central Goods and Services Tax (CGST) Commissionerate, Shimla, has unearthed an Rs 6.55-crore fraud involving fake invoices and fraudulent claims of input tax credit (ITC) and GST refunds in the Kala Amb industrial area of Sirmaur district and arrested the managing director (MD) of a pharma company. The accused has been identified as Gaurav Jain, MD of M/s Samay Pharma India Private Limited, Trilokpur, Sirmaur. According to officials, the investigation revealed that Samay Pharma and M/s Dual Healthcare had allegedly availed ITC on the basis of invoices issued by several fake and non-existent supplier firms.
It was found that ITC amounting to Rs 5.55 crore had allegedly been claimed through invoices linked to 10 non-existent firms. The officials also found that the invoices showed supplies for which the actual movement of goods could not be verified through e-way bills and toll-plaza data.
The alleged fraudulent ITC was subsequently included in the GST refund claims, with an attempt reportedly made to obtain cash refunds from the government exchequer.
The investigating officials found the alleged use of fake firms, invoices without actual movement of goods, suspicious accounting entries and shell entities to manipulate the GST input-credit and refund mechanism.
The officials recorded the statements of various people and examined digital evidence, based on which Jain was arrested under Section 69(1) of the Central GST Act, 2017.
Source from: https://www.tribuneindia.com/news/himachal/sirmaur-pharma-company-md-held-in-rs-6-55-crore-gst-refund-fraud-case/
