Tax authorities have busted tax fraud of crores of rupees being done through fake companies. Along with this, two masterminds have also been arrested. Officials said on Tuesday that these companies are registered in Gautam Budh Nagar and several areas of Delhi-NCR.
The Finance Ministry said in a statement that these companies are clearly interlinked. They filed huge refund claims for input tax credit under the Goods and Services Tax (GST) regime. These companies had made these claims for the supply of goods falling under zero tax and reverse tax structure (higher tax on raw materials and less tax on finished goods).
The company was not running at registered addresses
On March 13, the Central GST officials raided the registered addresses of companies at various places in Delhi, Faridabad, Gurgaon, Noida and Greater Noida along with Gautam Buddha Nagar. The ministry said that no current company was found at the addresses announced during the raids. Later, after further investigation, two people were identified who are its masterminds. They collected KYC documents from the partners and owners of registered companies through a racket.
Rs 60 crore recovery
The Finance Ministry said in a statement that these companies cut bills of Rs 1,892 crore in the name of input tax credit and made claims for refund of Rs 264 crore for this. Out of this, 60 crore rupees have been recovered. At the same time, pending refund claim of about Rs 131 crore has been banned. The residential premises of the suspected mastermind were also searched on March 15 and their statements were recorded. Based on his statements, he was arrested on 16 March under Section 69 of the Central GST Act.