Ludhiana DGGI arrests proprietor of Shree Ganesh Corporation over fake ITC of Rs. 8.11 crore


The Hush Post| 9:46 am|one-minute-read|

In a major crackdown against businessmen who are trying to fleece the exchequer by claiming forged GST refunds, the Ludhiana unit of directorate-general of GST Intelligence (DGGI) on Thursday arrested proprietor of Shree Ganesh Corporation in Mandi Gobindgarh. The businessman has been identified as Naresh Kumar. The accused allegedly showed bogus sales worth Rs 49.33 crore, and claimed a forged input tax credit (ITC) worth Rs 8.11 crore.

The arrest came under orders of DGGI’s additional director-general Gurusharan Singh. The accused is likely to be produced by the department in a court to seek his judicial remand.

The accused has been allegedly passing input tax credit of GST by issuing bogus sale bills, mainly of MS Scrap without actual supply of goods.

This arrest is a fall out of a search operation carried out on September 12 by DGGI and DRI in which raids were carried out at 336 locations across the country. A Ludhiana firm Balja International, which exports readymade garments was found to have made claims IGST refund byb showing bogus supply from a few suppliers. This included the firm of Naresh Kumar as well.

According to a Times of India report attributed to sources, the accused had issued sale invoices showing sales worth Rs 49.33 crore involving ITC of Rs 8.11 crore without supplying any goods.

DGGI sleuths scanned his bank accounts and confirmed bogus billing after Rs 10 lakh worth entries were found in his account, against sales of Rs 49.33 crore.

The DGGI will now also investigate other entities who did fake billing and passed bogus ITC to exporters and manufacturers.


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