Six companies violated the GST norms to earn undue profits and leading to a revenue loss worth Rs.110 Crore to the Government of India. This fraud came to the light when Majana Ram, the proprietor of one of the firms was arrested on Friday, for allegedly availing the input tax credit worth ₹12.10 crore, by showing fictitious physical inward supply [receipts of purchasing goods] in his GST returns. “The investigation has revealed that all the accused entities together flouted the laws and claimed ITC worth more than ₹110 crore by forming coterie and helping each other in issuing bogus invoices without actually supplying any goods to pass on the benefits of ITC to other companies,” a GST official said. The GST officials received a tip-off and began its enquiry against the private firms. It was discovered that the registered premises were residential premises or did not exist. GST Officials are investigating the case further.
