New Delhi, February 15: The GST intelligence unit of Gurugram has arrested a resident of Sonepat for allegedly issuing bogus invoices to the tune of Rs 268.3 crore for claiming input tax credit, an official release said on Thursday.
The arrest of Nitin Jain, proprietor of Shiv Trade Incorporation, Delhi, was made by the Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit (GZU).
During investigation it was revealed that Jain has issued bogus invoices through Shiv Trade Incorporation and another firm Om Trade Inexim, opened in the name of a dummy person, of various types of goods like ferrous/ non-ferrous scrap, ingots, nickel cathode amounting to about Rs 268.3 crore, the finance ministry release said.
Jain was arrested on Wednesday and was later sent to judicial custody by a Gurugram court for 14 days. Through bogus invoices, Jain has fraudulently passed input tax credit (ITC) amounting to Rs 41.6 crore, the release added.
This ITC was further availed by various entities to offset their GST liability and also passed on such fraudulent ITC to further buyers who availed the same to discharge their GST liability against their outward supplies with an ulterior motive to defraud the exchequer.
During the course of investigation, Jain also admitted to having issued bogus invoices in lieu of certain fixed commission, the release added.
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