Pvt firm employees held for GST fraud

Based on information that the firm, which supplies manpower to various industries, has been availing fraudulent ITC from several non-existent firms, searches were conducted on its various premises, including the residences of senior executives.

Preliminary investigation revealed that its director colluded with his part-time accountant to devise a dubious scheme to avail ITC based on tax invoices issued by 26 bogus/non-existent units. The firm availed fraudulent ITC of Rs 21.56 crore to offset their GST liability, said a release from Directorate General of GST intelligence.

Investigation revealed that the accountant played a key role in arranging bogus invoices, availing fraudulent ITC, filing GST returns and facilitating the payments, it said, adding that the director and the accountant were arrested on Thursday.