Delhi: GST dept busts ₹14cr refund fraud, 1 held

The department of trade and taxes of Delhi government said they have busted a case of Goods and Services Tax (GST) refund fraud amounting to approximately ₹14 crore and have also arrested a proprietor.

The department said ₹1.16 crore has been recovered so far and proceedings are underway to retrieve the remaining amount. As many as 45 bank accounts linked to 27 implicated entities have also been frozen. An FIR has been lodged with the Economic Offences Wing (EOW).

A senior department official said the investigation revealed a network of individuals who created and operated four fictitious firms to illegitimately claim GST refunds under the guise of genuine business activities.

Police said data analytics with scrutiny of banking transactions, were used to trace the flow of funds across multiple entities located within Delhi, other states, and international jurisdictions such as Hong Kong and Singapore.

“We identified multiple entities using the same PAN, mobile numbers, and email addresses as those used by the fraudulent firms. As an immediate enforcement measure, the registration of Delhi-based entities has been suspended. Additionally, information has been shared with jurisdictional authorities in other states for further action against entities operating in their areas. In coordination with the Income Tax Department, the department has also flagged and recommended the blocking of PANs associated with the fraudulent activities,” the official added.

Source: Hindustan Times