ITC Laundering of 200 crs in Plastic Detected

Central GST Delhi West Commissionerate arrested two Rohini based businessmen here in Delhi on 1 August 2018 in a case of fraudulent issuance of Input Tax Credit (ITC) invoices without actual supply of goods involving tax evasion of approximately Rs. 201 crore relating to Plastic Granule Industry.

Searches were conducted at several places during which various incriminating documents and evidences were found. During investigation, it was revealed that the businessmen had floated multiple entities for issuing such fake invoices. Both of them were arrested under Section 69(1) of the CGST Act, 2017 and produced before the Metropolitan Magistrate, Patiala House in national capital.

Further investigations are underway and the quantum of evasion is likely to go up. Officers are not ruling-out the possibility of existence of several other fake firms as the investigation moves ahead.