Two arrested for input tax credit racket

Jaipur, June 21, 2023

The Zonal unit of DGGI (Directorate General of Goods and Services Tax Intelligence), Jaipur have busted a syndicate based in Jaipur and Delhi allegedly involved in operating 212 non-existing firms to get bogus input tax credit (ITC) of Rs 320 crore to various recipient units. Two persons have been arrested in this connection so far. All this was done without supplying of any goods or services. According to an official release by DGGI, Jaipur, masterminds Shubham Jindal and his brother Tarun Jindal, aged 22 to 24 years, residents of Jagatpura, Jaipur had allegedly hired three Delhi-based persons for operating and managing these fake firms.

“The investigation indicated that the syndicate used different type of brokers for passing of fake ITC as some brokers are involved in creating fake firms, some were into managing cash/RTGS transfers and other brokers provided recipient firms who need bogus bills from fake firms. Their bank accounts having balance of around 60 Lakhs have been attached,” said an officer.

[The Times of India]