GST Intelligence unearths GST fraud of Rs 150 crore

The Directorate of the Goods and Services Tax Intelligence in Delhi has identified fraudulent input tax credit (ITC) claims worth Rs 150 crore after a series of raids, according to the information by the officials. GST intelligence officials conducted raids at units in Jammu and Kashmir, Delhi and Uttar Pradesh, finding most of them to be fake companies. The bogus firms had purportedly supplied goods worth Rs 1,500 crore to help claim ITC of about Rs 150 crore in the past two years.

The two Srinagar-based units used to get fake bills from the bogus companies and then claim ITC refunds from the government, according to the officials. The accused had deposited Rs 6 crore with the GST authorities. Officials said investigations are still in progress. Under ITC, manufacturers can deduct tax on inputs for their businesses from the amount that has to be paid to the government.