TN kingpin of fake tax credit arrested, Rs 98 Cr multi State
A fake Input Tax Credit racket to the tune of Rs 98 crore in which firms in States including Maharashtra illegally benefited was busted and the Tamil Nadu based kingpin was arrested following searches.
The racket involved issuing fake invoices worth over Rs 543 crore in the name of eight bogus firms and the kingpin was produced before a court here which remanded him to judicial custody, the Directorate General of GST Intelligence here said.
It involved getting GST registration by creating fake firms and opening bank accounts for such companies. Subsequently, a complex maze of transactions was created between such bogus firms, without actual supply or movement of goods and payment of GST.
"The entire racket revolves around circular trading and passing on the Input Tax Credit to various customers without actual supply of goods," Additional Director General, DGGST, K Balaji Majumdar said in a release.
"It was all about round-tripping the money through a labyrinth of ...