A resident from Surat was arrested on December 9 by the Central Goods and Services Tax (CGST) for an Input Tax Credit (ITC) fraud of Rs 26 crore.
Abdul Samad Kapadia obtained Aadhar Cards, Pan Cards, and bank account details of different people to create dummy firms and operated from them. Out of a total of 22 firms created by him, his export business functioned from only 11. And the rest were just bogus dummies to evade taxes.
The fraud came to light after officials from the anti-evasion wing of CGST, trailed the case through data analysis. The officials found that the dummy firms involved in the export business had claimed Integrated Goods and Services Tax (IGST) refund on the basis of fraudulent ITC, with the help of bogus invoices to the tune of Rs 26 crore against invoice value of Rs 163 crore.
The offender confessed about taking bogus ITC of around Rs 25.62 crore from such bogus firms without even purchasing any material. He has been booked under Sections 69 and 132 (1)(c) of the CGST Act, 2017.
