Belagavi (Karnataka), Oct 18 (PTI) The Directorate General of GST Intelligence (DGGI), Belagavi zonal unit, on Saturday said it uncovered GST evasion worth Rs 21.64 crore at a scrap business in Harihar, Davanagere.
According to the DGGI, the firm issued fake invoices valued at around Rs 112 crore, resulting in fraudulent availment and utilisation of Input Tax Credit (ITC) of Rs 17.14 crore.
"During the inspection, Mohammad Saqlain, identified as the key person responsible for the operations of the firm, was confronted with evidence collected by the department. He admitted fraudulent availment of ITC on the strength of fake bills," a statement by DGGI said.
He also acknowledged a short-payment of GST under the reverse charge mechanism (RCM) amounting to Rs 4.50 crore, taking the total GST evasion to Rs 21.64 crore, it added.
Investigations revealed that the taxpayer largely procured metal scrap from unregistered suppliers, where ITC was not admissible, while purchases from registered entities were made from non-existent or fictitious firms. Genuine transactions were allegedly layered with bogus invoices to fraudulently pass on ITC and evade tax.
DGGI officials also found evidence of forged documents used to obtain fake GST registrations to issue invoices for commission.
Saqlain was arrested on Friday under Section 69 of the CGST Act, 2017, and produced before the JMFC Court here, which remanded him to 14 days judicial custody.
Further investigation is underway, DGGI officials said. PTI GMS SSK ROH