Ghaziabad businessman held for Rs 98 crore GST fraud

GHAZIABAD: The central GST department of Ghaziabad has arrested a local businessman in connection with a Rs 98 crore goods and services tax (GST) fraud. Rakesh Sharma, the accused, created fake firms and generated bogus invoices through them to avail fake input credit of Rs 37 crore, officials said.
Alok Jha, commissioner of central GST, Ghaziabad, said, “On Friday, we arrested Rakesh Kumar, the proprietor of M/s Kumar Sales engaged in the business of tobacco products.He issued fake GST invoices without actual supply of goods and passed on the said fraudulent input tax credit to other firms at a certain percentage through bogus companies.”
“We carried out searches at his offices and residence and seized incriminating documents proving his involvement in the fraud. He was produced in the court of the chief judicial magistrate and sent to judicial custody,” added Jha.
In January, the department conducted similar raids at offices of three firms and unearthed GST fraud involving taxable value of Rs 81 crore.