DGGI officials arrests one for fraudulently availing ITC of more than Rs 16 crore

Last updated: 12 April 2022

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Officials from the Directorate General of GST Intelligence (DGGI) in Gurugram have arrested an individual involved in a significant Input Tax Credit (ITC) fraud. The accused allegedly availed and passed on fraudulent ITC amounting to Rs 16.74 crore by using a network of fake, suspended, and non-existent firms, despite not receiving any goods. The arrest followed a search that yielded incriminating documents and electronic devices.

One arrested by DGGI Gurugram officials for fraudulently availing Input Tax Credit of more than Rs 16 crore

The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GU), Gurugram, has unearthed a case wherein a series of entities controlled by a person as Proprietor / Director of M/s Umang Overseas, M/s Ulagarsan Impex Put Ltd and M/s Umang Impex Private Limited, was found to be involved in availing and passing fraudulent Input Tax Credit (ITC) of Rs 16.74 crore without receipt of goods from different fake, suspended and non-existent firms.

A search was conducted at various premises on 04.04.2022. During the search, many pen drives, rubber stamps of different firms, documents/ records were resumed and the same are being investigated for estimation of duty evasion.

ITC Fraud: One Arrested for Rs 16 Crore GST Evasion

The key person involved in availment and passing of fraudulent ITC was arrested on 05.04.2022 and produced before the Chief Metropolitan Magistrate, Patiala House Court on 05.04.2022 and ordered judicial custody for 14 days.

Further investigation in the matter is under progress.

FAQ :

DGGI Gurugram officials arrested a key person involved in availing and passing fraudulent Input Tax Credit (ITC).

The fraudulent Input Tax Credit (ITC) amounted to Rs 16.74 crore.

The fraudulent ITC was availed and passed on without the receipt of goods, using a series of entities controlled by the arrested individual, linked to fake, suspended, and non-existent firms.

A search was conducted on 04.04.2022, and the key person involved was arrested on 05.04.2022.

During the search, pen drives, rubber stamps of different firms, and documents/records were resumed and are being investigated.

The arrested individual was produced before the Chief Metropolitan Magistrate, Patiala House Court, and ordered into judicial custody for 14 days. Further investigation is ongoing.

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