A 25-year-old student of chartered accountancy (CA) was arrested by the goods and services tax (GST) officials for committing fraud to the tune of Rs 50.24 crore through input tax credit (ITC) facility. Prince Manish Kumar Khatri, a resident of Ahmedabad, was arrested by the CGST-II, Vadodara after it learnt about his fraud during data analysis of the suspicious taxpayers.
GST officials said that Khatri had floated more than 115 fake firms for executing the fraud. He made fake invoices to generate ITC amounting to Rs 50.24 crore. The illegal and fake credit was eventually passed on in chains to other fake firms without any actual supply of goods and services. Khatri told GST officials that he used identity cards of villagers from Dahod and Ahmedabad to create the fake firms. He had promised the villagers a monthly payment of cash.
Khatri used to work for a firm and dealt with several companies. “Khatri admitted that he made a web of fake firms to benefit some existing and real companies.,” a GST official said.
Source from: https://timesofindia.indiatimes.com/city/vadodara/ca-student-held-for-rs-50cr-gst-fraud/articleshow/78794802.cms