GST Fraud Unmasked: Crores Lost in Fake Firms Racket
In Meerut, a GST fraud network involving fake firms has been uncovered by the crime branch, leading to one arrest. The accused, including Pramod Kumar, used fake invoices to illegally claim input tax credits, resulting in a loss of approximately Rs 3 crore to the exchequer.
- Country:
- India
A major GST fraud involving crores of rupees has been uncovered in Meerut by the crime branch unit, leading to the arrest of one suspect, police reported on Wednesday.
The investigation, initiated from a case at Ganganaagar police station, revealed that Pramod Kumar, 56, and his associate Sarvang Jain, orchestrated the scam by creating fake firms to fraudulently claim input tax credit (ITC) through bogus invoices.
The government lost an estimated Rs 3 crore, with the potential total loss still under probe. Despite being served multiple notices by the GST department, the suspects remained unresponsive until the main accused was apprehended on March 31.
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