Pune: Company Issues Fake GST Invoices Worth Rs 66 Crore, Managing Director Arrested

gst bhavan pune
Share this News:

Sushant Ranjan
Pune, 17th March 2021: The Headquarters Preventive Unit of Pune-II CGST Commissionerate while acting on intelligence gathered by them has busted a modus operandi of issuing fake GST invoices without receipt or supply of any services by M/s Sigma Techinfra Solutions (I) Private Limited who is registered in GST for supplying of services of manpower.

According to officials, an investigation was initiated against the said company for issuance of fake GST invoices of approximately Rs 66 crores including GST of Rs 12 Crores to facilitate bogus Input Tax Credit (ITC) claims and dupe the Government Exchequer. The accused is a part of a racket involving the issue of fake GST invoices to claim a fraudulent input tax credit (ITC) from the government without any receipt or supply of services.

As per GST laws, ITC can be availed only against taxes paid to the government on receipt of goods or services. However, M/s. Sigma Techinfra Solutions (I) Private Limited took work orders from various prominent companies and subcontracted the same work to non-existent companies who exist only on paper and thus availed ITC on bogus invoices and passed on the same to prominent companies without actual receipt/supply of services. A search was conducted at different premises of the company in Pune and Mumbai. The statement of the accused was also recorded who has admitted to this modus operandi.

Consequently, the Managing Director of the Company Sanjay Shesherao Gaikwad was arrested on 16.03.2021 by a team of Headquarter Preventive Unit for the offence committed under the provisions of Sections 132(1) (b) and (c) of CGST Act, 2017 which is cognizable and non-bailable and produced before the Chief Judicial Magistrate (CJM) Court, Pune on the same day. The accused was remanded under Judicial Custody by CJM Court, Pune for 14 days. Further investigations in the matter regarding the involvement of other firms and financial transactions between these firms are in progress.

This operation was conducted by the team of officers of Headquarter Preventive Unit of Pune-II CGST Commissionerate comprising Sushilkumar Kale, Joint Commissioner, Sachin Ghagare, Deputy Commissioner, Pradeep Kumar Singh, Superintendent and Deepak Kumar, Inspector under the directions of Rajeev Kapoor, Commissioner, Pune-II CGST Commissionerate.

The Central GST Department is monitoring such fraudulent activities and will take stringent action against people indulging in such activities to defraud the government exchequer.