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DGGI arrests firm's director, accountant for fraudulently availing ITC

SHRPL is believed to have have availed and utilised fraudulent ITC of Rs 21.56 crore on an invoice value of Rs 121.76 crore

Topics
GST | GST registration | fraud

T E Narasimhan  |  Chennai 

financial fraud investigation, audit and analysis
The investigation has also found that the part-time accountant played a key role in arranging bogus invoices.

The Chennai Zonal Unit of the Directorate General of Intelligence (DGGI) has arrested the director of a firm and an accountant for fraudulently availing Input Tax Credit (ITC) of Rs 21 crore through fake invoices.

The department said that Srimarg Human Resource Pvt Ltd (SHRPL), Chennai was engaged in providing manpower to various industries and manufacturing units located in Chennai and Tada.

After officials came to know that the company had been fraudulently availing ITC without any actual receipt of goods/ services from several non-existent firms, simultaneous searches were conducted at various premises including the residential premises of the company's directors on January 6, 2021 and incriminating evidence was seized.

Preliminary investigations revealed that the director of SHRPL had colluded with his part-time accountant in devising a nefarious and dubious scheme for fraudulently availing ITC on the strength of tax invoices issued by almost 26 bogus/ non-existent units. SHRPL is believed to have have availed and utilised fraudulent ITC of Rs 21.56 crore on an invoice value of Rs 121.76 crore to offset their output liability, which otherwise would have been paid in cash, thereby resulting in a huge loss of revenue to the government exchequer.

The investigation has also found that the part-time accountant played a key role in arranging bogus invoices, availing ITC, filing GST returns and facilitating the payments for the same.

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First Published: Fri, January 08 2021. 11:43 IST
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