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New Delhi, February 14, 2020
The Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit (GZU), Haryana, has arrested Nitin Jain, a resident of Sonepat, Haryana, for allegedly issuing bogus invoices.
During investigation it was revealed that Jain has issued bogus invoices through his firm, Shiv Trade Incorporated and another firm, Om Trade Inexim, opened in the name of dummy person, of various types of goods namely ferrous/ non-ferrous scrap, ingots, nickel cathode etc. amounting to about Rs 268.3 crore, an official press release said.
The release said that, through bogus invoices, he had fraudulently passed Input Tax Credit (ITC) amounting to Rs 41.6 crore. This ITC was further availed by various entities to offset their GST liability and also passed on to further buyers who availed the same to discharge their GST liability against their outward supplies with an ulterior motive to defraud the Government exchequer, it said.
During the course of the investigation, Jain also admitted of having issued bogus invoices in lieu of certain fixed commission, the release said.
According to the release, Jain has committed offences under the provisions of Section 132(1)(b) & (c) of the Central Goods & Services Tax Act (CGST), 2017, which are cognizable and non-bailable offences and punishable under Section 132 of the CGST Act, 2017.
He was arrested on Wednesday under Section 69(1) of the CGST Act, 2017 and produced before Judicial Magistrate in Gurugram Court on the same day. The court has sent him to judicial custody for 14 days. Further investigation in the matter is in progress, the release added.