THIRUVANANTHAPURAM: The Thiruvananthapuram Central GST Commissionerate has arrested the managing director of a leading IT solution provider based in the capital for availing fictitious input tax credit. The office here said the case was of circular trading by way of issue of fake invoices without actual supply of goods as well as availing of input tax credit (ITC) on the basis of the fake invoices.
The arrested person owned two companies and trade activities were faked between both. The managing director and proprietor, both the same person, of the two firms “indulged in circular trading between the two entities by issue of invoices without actual supply of goods and availed of input tax credit involving GST of about `12 crore. In the process, evasion of GST amounting to `1.95 crore also occurred”, the commissionerate stated.
The offences include wrongful availing of input tax credit through the issue of invoice without supply of goods or services, and failure to pay the GST to the government. He has been charged under Section 132(1) of the Central GST Act, 2017. He was produced in the Economic Offence Court. The commissionerate has so far arrested three persons in similar cases of bogus ITC of about `30 crore.