GST FRAUD ARRESTS
Man arrested in Rs 10,000 cr GST fraud case after nine months on the run
A 31-year-old man, Babar Khan, evading police for nine months, was arrested in connection with a Rs 10,000-crore GST fraud across India. Khan allegedly set up fake firms using stolen or forged ID cards to fraudulently claim input tax credit. Noida police initially busted the gang last year, which operated by registering thousands of companies under false identities to generate e-way bills and claim government benefits.
ETtech Deep Dive: How RBI and NPCI are working to tackle mule account frauds
The RBI, the National Payments Corporation of India, and the Ministry of Home Affairs are teaming up with banks, financial institutions, and tech security companies to crack down on mule accounts and prevent fraud in the country's banking system.
Supreme Court asks Centre to furnish data on notices, arrests done under GST Act
The Supreme Court has asked the Centre to provide information on notices and arrests made under the Goods and Services Tax, expressing concern over potential harassment. Justices are reviewing petitions challenging GST Act provisions, seeking clarity on arrest powers to prevent citizen mistreatment. Data on arrests and notices for defaults of Rs 1-5 crore in the last three years is required. The Court aims to protect citizens from undue hardship and may amend ambiguous provisions.
GST National Coordination meeting on Friday may discuss tightening noose on fake registrations
Central and state GST officers will convene to discuss various issues, including stricter registration norms to combat fake companies evading taxes. This meeting follows record-high GST collections of Rs 2.10 lakh crore in April, driven by economic momentum and enhanced scrutiny. Among the topics on the agenda are tightening GST registration to deter fraudulent companies and tracking the money trail of GST fraud masterminds.
Rs 15,000 crore GST fraud: How a businessman cheated via 3,300 shell companies, 35 fake firms and electricity bills
Delhi-based businessman Tushar Gupta has been arrested in connection with a Rs 15,000 crore GST fraud exposed last year. Gupta was part of a syndicate that used fake documents to establish over 3,300 shell companies, generating e-way bills for transporting goods or services and claiming input tax credit (ITC).
Karnataka officials bust fake ITC claim racket involving 100 firms with Rs 1,008 cr in turnover
The commercial taxes department in Karnataka, India, has arrested four individuals connected to a scrap goods racket that engaged in fictitious transactions to claim input tax credit (ITC). The network included about 100 firms with a turnover of INR 1,008 crore (about $133 million) and taxes of about Rs 180 crore ($23.7 million).
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GST officials detect 14,597 tax evasion cases in Apr-Dec 2023
GST officers in India are using data analytic and artificial intelligence tools to identify taxpayers suspected of fake input tax credits. During April-December 2023, 14,597 cases of GST evasion were registered, with Maharashtra having the highest number (2,716). The use of NETRA, BIFA, and ADVAIT tools has helped detect fake ITC cases worth Rs 18,000 crore and arrest 98 fraudsters.
DGGI busts 1,700 fake ITC cases worth Rs. 18,000 crore in Apr-Dec, arrests 98
DGGI has busted 1,700 fake Input Tax Credit (ITC) cases worth Rs 18,000 crore and arrested 98 people. Using data analysis and advanced tools, DGGI apprehended tax evaders involved in creating fake firms and companies. In one case, a firm in Haryana generated E-way bills and created Rs. 1,100 crore fraudulent ITC.
Fake ITC Claim of Rs 180 Crore: Karnataka’s GST authorities detect 100 bogus firms, arrest mastermind
Karnataka's Commercial Taxes Department, in collaboration with Kerala State GST authorities, has arrested Mohammed Siddiq for his role as a key mastermind in a multi-state GST fraud. The operation exposed a significant network involved in acquiring dummy GST registrations through forged documents and facilitating a scrap business across Kerala, Tamil Nadu, and Karnataka.
GST intelligence unit detected over Rs 1.98 lakh crore worth tax evasion cases in 2023
"DGGI has achieved an increase in detection of cases of evasion and voluntary payments. In 2023, DGGI detected 6,323 cases involving evasion of duty of Rs 1,98,324 crore with a voluntary payment of Rs 28,362 crore. 140 masterminds involved in GST evasion were arrested," the ministry said in a statement.
GST officers detect over 29,000 bogus firms involved in fake ITC claims of Rs 44,000 cr
To curb fraud in Goods and Services Tax (GST) and increase compliance, the GST formations, under the Central Board of Indirect Taxes and Customs (CBIC) and the State/UT Governments, across the country are carrying out a focused drive on the issue of non-existent / bogus registrations and issuance of fake invoices without any underlying supply of goods and service.
Ease of doing business: India may do away with arrests for sub-Rs 3 crore GST evasion
Currently, under Section 132 of the Central GST (CGST) Act, illegal credit for GST evasion is a criminal offence. GST evasion of Rs 2 crore and above attracts a three-year jail term. The GST Council, in December 2022, approved an increase in the threshold in phases. It was enhanced to Rs 2 crore in March.
Shemaroo Entertainment hits 5% lower circuit after 3 officials held for GST fraud
The ITC was received on the basis of invoices without actual receipt of any goods/services. Jhaverchand Soni, the partner of Shemaroo Entertainment, had told officials that he was only paid for signing some documents.
GST fraud: Taxmen arrest two in Bengaluru for fake ITC claims using 30 shell companies
Two individuals have been arrested in Karnataka for allegedly cheating the government out of crores of rupees through a fake GST bill racket. The accused allegedly operated a syndicate that helped companies in the manpower and labour supply industry claim input tax credit based on fictitious transactions. The authorities suspect a revenue loss of around Rs 90 crore and are currently investigating transactions worth Rs 525 crore.
GST evasion of Rs 14,302 crore detected in April-May; 28 persons arrested
As many as 2,784 cases of GST evasion involving Rs 14,302 crore were detected in the first two months of the current fiscal, while Rs 5,716 crore was recovered during the period, Parliament was informed on Monday. Finance Minister Nirmala Sitharaman in a written reply in the Lok Sabha gave details of Goods and Services Tax (GST) and income tax evasion, as well as detection of outright smuggling by the Customs department.
DGGI busts fake GST bill operator gang
The Directorate General of GST Intelligence (DGGI) has busted a gang of ‘fake GST bill operators' who used to run a syndicate to help companies, especially in the metal and scrap industry, to avail of input tax credit (ITC). DGGI’s probe has revealed that around 160 companies were floated, using documents that were fraudulently procured from people by promising to help them get government’s Covid relief or employment.
Brought GST under PMLA purview to empower investigators in fighting financial fraud: Centre
The central government on Saturday issued a notification to bring the Goods and Services Tax Network (GSTN) under the Prevention of Money Laundering Act (PMLA). With the implementation of the said order, the information stored on the GST Network can now be shared, as may be required, under the PMLA Act.
Multi-crore GST scam: Three more held, total arrests 18
The Noida Police has arrested three additional individuals in a multi-crore goods and services tax (GST) scam, taking the total number of arrests to 19. The scheme has caused a significant loss of revenue to the government. The criminal activity involved thousands of fraudulent companies being set up with forged Aadhar cards, fake invoices, and input tax credits. The three most recent arrests saw the police identify the trio as being part of a larger syndicate.
CGST Delhi busts nexus for input tax credit fraud of Rs 50 crore, one arrested
Searches were undertaken at multiple locations in Delhi using data analytics, and it was found that a person named Shiva had been obtaining KYC credentials from persons on the pretext of getting loans sanctioned for them and subsequently selling the firms, a ministry of finance release said.
GST evasion of Rs 30,000 crore unearthed
The identities of beneficiaries of PM Kisan and other social security schemes were allegedly used to operate 4,000 shell companies and 16,000 fake GST registrations.
Cyber crooks stole celebs' PAN details to get credit cards: How to safeguard yourself
Ritesh Bhatia, Founding Director, V4WEB Cybersecurity says intermediaries really need to do something about it. Our PAN cards and Aadhaar cards are all across because at every place, it is required. They need to step up. We need not use an Aadhaar card as an identity mechanism, but it is meant to be used for authentication and verification and that can be done by scanning the QR code.
Cyber criminals use PAN details of celebrities for credit card fraud, five arrested
Some of the celebrities whose names and details were used by the fraudsters are Abhishek Bachchan, Shilpa Shetty, Madhuri Dixit, Emraan Hashmi and Mahendra Singh Dhoni, Deputy Commissioner of Police (DCP) of Shahadra Rohit Meena said.
ED attaches Rs 907 crore, arrests 3 in relation to money laundering by crypto exchanges
Minister of State for Finance Pankaj Chaudhary said Central GST officers have detected Goods and Services Tax (GST) evasion worth ₹87.60 crore by 12 crypto exchanges. Recovery of ₹110.97 crore, including interest and penalty, has been made.
GST evasion of Rs 55,575 crore detected in last 2 years, 719 persons arrested
The GST department is taking steps to curb evasion, including verification of registration, e-way bill requirement, and validation for filing GST returns, and also placed restrictions on the quantum of ITC that can be used by businesses for GST payment.
GST Fraud: Absconding businessman arrested
"During the investigation proceedings, Shafik Ahmed Mumtaz Khan absconded and did not respond to the summonses issued by the department. However, due to persistent effort of the department, Khan after nearly two months surrendered at Mazgaon, Mumbai and also paid partial tax liability amounting to Rs 1.51 Cr.
GST Odisha enforcement wing busts ITC fraud of Rs 311 crore
As per the Commissionerate of CT&GST, Odisha, 12 teams consisting of 48 officers of the State GST Enforcement Wing (assisted by 35 Police officials) have nabbed 5 masterminds from Rourkela for their involvement in availing and passing of bogus ITC worth Rs 311.03 crore.
GST officers arrest 357 persons since mid-Nov for fake invoice fraud
Since mid-November, 3,500 cases have been booked and 10,400 fake GSTIN entities have been unearthed by GST intelligence and Central GST officers so far.
GST officers arrest one for Rs 39 crore ITC fraud
Investigation revealed that the multilayered network was being operated by one Nihaluddin who has confessed to having created a fake firm in his own name and also arranging ITC from 38 other fictitious firms on commission basis to pass on fake ITC to multiple beneficiaries.
Government crackdown on 7,000 GST evaders, 185 arrested
The government netted a record GST collection of Rs 1.15 lakh crore in December 2020, helped by the action against tax evaders alongside pick up in the economy.
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