The Goods and Services Tax (GST) authority arrested four people last week in separate cases of tax evasion worth ₹52 crore and ₹78 crore as part of its drive against fake invoices, a Union finance ministry spokesperson said on Monday.
The official said the Delhi West Commissionerate of the Central Goods and Services Tax (CGST) on Wednesday arrested one man for fraudulently helping at least six firms in misappropriating input tax credit (ITC) by using fake invoices and Aadhaar identification number. Separately, the CGST Mumbai Zone arrested three partners of a firm on Sunday for GST evasion amounting to ₹78 crore, the official said and added that the tax authorities were intensively using data analytics and artificial intelligence to check tax evasion and nab culprits.
"On the basis of an alert, an investigation against M/s Niyati Steels has been undertaken by CGST Delhi West Commissionerate. One Shri Karan Kumar Aggarwal in his voluntary statements has admitted that he looks after all day-to-day transactions and operations of the said firm," the ministry said in a statement and added that the firm has availed ITC of ₹7.7 crore from non-existent entities.
Through further inquiry and the use of analytical tools, it was found that six more firms were linked to Agarwal, it said.
"These firms on the strength of goods-less invoices worth approx. Rs. 292 crore, have collectively availed ineligible/inadmissible ITC of more than Rs. 52 crore from non-existent entities," it added.
Agarwal has admitted in his voluntary statement that he used his Aadhaar for authentication in all these six firms and has issued goods-less invoices without receiving any goods in some of these firms and he is also involved in the sale of goods-less invoices for the commission of 3% to 4% of the taxable value of the invoices, the ministry said.
"In view of his own admission of his involvement in availment of ineligible/inadmissible ITC and substantiated by data analytics, Karan Kumar Agarwal was arrested for offences under section 132 of the CGST Act, 2017 read with section 69 of the said Act and remanded to Judicial Custody by the Ld. ACMM [Additional Chief Metropolitan Magistrate] Court for 14 days," the ministry statement said, adding that officials were further investigating the matter.
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