MH Dept Arrests Businessman for GST Fake Invoices of INR 2,100 CR

In the concern of issuing the fake invoices of Rs 2100 cr and availing for ITC of Rs 185 cr. The Maharashtra Department of Goods and Services Tax has captured the person who is running a business in Mumbai. He frames a bogus picture by mentioning that he is running 30 companies to provide the invoices of Rs 2100 cr without having the actual business or production and upon that he passes ITC of Rs 185 cr.

In return for the GST payable on buying the goods and services Get to know GST provisions and rules on the free supply of goods. Also, we have included rules regarding ITC reversal on free supplies of goods and services, the credit provided by the government is called an income tax credit. The illegal trader tries to avail the ITC by providing fake bills that will automatically show the turnover higher on the account of which they apply for the bank loans. Fake firms are enrolled and bogus invoices produced without any movement of goods and these invoices generate the fraud ITC claim.

Dilipkumar Ramgopal Tibrewal, who is engaged in the cotton and fiber business is the owner of August Overseas Private Limited; director of Aaryanaman Global the proprietor of Shagun Fibres; and various other firms.

Tibrewal registered four firms in the name of his and his family members revealed in the investigation by the Joint Commissioner of State Tax, Investigation-B. Beneath the Maharashtra Goods and Services Tax Act and the Central Goods along with the service tax act. 26 companies have been found running in the name of the other people. Tibrewal has provided fake invoices for sales worth Rs 2100 cr by using the 30 registered companies which do not provide any goods and service. Also, he then agreed on a bogus ITC of more than Rs 185 crore to several companies.

This will majorly harm the government and the act constituted an offense beneath the Maharashtra Goods and Services Tax Act / Central Goods and Services Tax Act.

“Tibrewal was booked and arrested on Monday morning from his residence in Malad. He was produced before the Esplanade Court and sent to 14 days’ judicial custody,” said GST council.