An ‘accountant’ has been arrested for allegedly issuing false bills of Rs 1,000 crore and committing an input tax credit (ITC) fraud of Rs 181 crore, GST authorities said on Wednesday.
The 27-year-old, who had studied up to grade 12 and worked as an accountant and GST consultant, was arrested by officers of the Palghar CGST Commissioner of the Mumbai Zone, according to an official statement.
Investigations into the matter began based on specific input received from data mining and data analysis, which indicated that M/s Nithilan Enterprises engaged in the use and transmission of false ITC by issuing false invoices without receiving any goods or services, it said.
It was later revealed that the accountant – whose identity has not been disclosed – had stolen the identity of one of his clients for committing the GST fraud for monetary gain, the statement said.
Faced with material evidence, the accountant confessed to the offense of issuing more than Rs 1,000 crore in fake bills and using fake ITC of Rs 181 crore after which he was arrested on Tuesday.
A local court has remanded the arrested suspect for 14 days.
The statement states that the suspect is suspected of being part of a larger network that entices innocent people to obtain GST registration and then “steal” this registration, which is then used to generate, use and pass on fake ITC .
Efforts are underway to identify the hub of the racket and other beneficiaries of this network, the statement said.
The arrest follows a wave of similar actions by the GST authorities in the megapolis.
The statement said that only the Palghar CGST Commissioner has discovered tax evasion of Rs 460 crore, recovered Rs 12 crore and arrested two so far.