Two persons were arrested by GST officers for passing on bogus input tax credit (ITC) of over Rs 392 crore from non-existent firms to Essel Group companies without actual supply of any goods or services.
The officers of the Central Goods and Services Tax (CGST) Commissionerate, Delhi (East), unearthed a network of fictitious companies being operated by Naresh Dhoundiyal in connivance with Devender Kumar Goyal, who is a Chartered Accountant by profession.
The finance ministry said, "Both Naresh Dhoundiyal and Devender Kumar Goyal are former employees of Essel Group. Though they are presently not working with the Essel Group officially, however, they are passing on inadmissible ITC to the said group".
Investigations indicate that a layer of genuine looking fictitious intermediary companies was created to pass on bogus ITC from non-existent and fake firms to the companies of Essel Group without actual supply of any goods or services.
The total fake Input Tax Credit passed on by such fictitious intermediary companies is quantified to be Rs 92.18 crore whereas, the total fake Input Tax Credit passed on by other fictitious and non-existent firms pertaining to the larger network is quantified to be more than Rs 300 crore. The syndicate has thus defrauded the Government exchequer of more than Rs 392 crore by issuing bogus invoices of more than Rs 3,000 crore without actual supply of any goods or services.
Dhoundiyal and Goyal have been remanded to judicial custody for 14 days till March 18. Further investigation in the case is in process. From the inception of GST Central Tax, Delhi Zone has made 30 arrests in various cases, involving GST evasion amounting to more than Rs 4,450.86 crore.
